Energy prices

EU energy prices are generally volatile and dependent on developments on the electricity markets. In recent years, Europe has increasingly focused on the expansion of climate-neutral energies in order to reduce its dependence on fossil fuels. These efforts have an impact on energy costs in Europe. The Table.Briefings editorial team provides all the background information and news on EU energy policy. Why are EU energy prices rising? There are many reasons for the high EU energy prices. Some of the causes of rising energy prices are The increase in electricity, oil and gas prices demonstrates the EU's dependence on fossil fuels and the need to increase the expansion of renewable energy and increase energy efficiency. How have EU energy prices developed? EU energy prices were already rising in the fall of 2021, but consumers did not notice the increase at the time. The development of energy prices in 2022 peaked at the end of August. When will EU energy prices fall again? Forecasts for energy prices in 2023 vary, but it is unlikely that EU energy prices will fall permanently. The average EU energy price will remain high, especially as long as there is a dependency on Russian natural gas. However, the expansion of renewable energies and mild weather can be factors that lead to (at least temporarily) lower energy prices. What is the government doing to combat high energy prices? The governments of the EU member states have set themselves the goal of tackling the energy crisis together. Specifically, the EU The EU has initiated various measures to combat high energy prices. These include Who will receive the flat-rate energy price subsidy in Germany? Due to the high EU energy prices, the German government has adopted or planned various packages to relieve the burden on citizens. In addition to the gas and electricity price brakes and fuel discounts, the "energy prices" relief package includes the flat-rate energy price allowance. The energy price lump sum is a one-off payment of EUR 300 to ease the burden on the population. How high will energy prices be in Europe in 2022? Energy prices in Europe in 2022, or more precisely: electricity prices in Europe in 2022 will be highest in Denmark and Germany. The high energy prices in Denmark and Germany can be explained primarily by the high levies and taxes. In countries such as Georgia, Turkey, Bulgaria and Hungary, energy prices are also lower because the levies are much lower. How are electricity prices set in Europe? The price of electricity in Europe is determined by the so-called merit order. Here, electricity traders forecast how much electricity will be needed at a particular time. The electricity is then procured from various sources, with the cheapest sources being used first. Renewable energies such as solar or wind power are often particularly cheap, but do not have enough capacity. For this reason, more expensive, less sustainable energy sources are also used. Once enough electricity is available, the price is set for all energy sources. This EU energy price is based on the last, i.e. most expensive, supply. The current problem with this mechanism is that EU energy prices have not risen overall as a result of the war in Ukraine, but only the price of natural gas has actually increased. However, the merit order has an impact on the overall electricity price, as there is not enough electricity from renewable sources. This means that operators of wind and solar power plants in particular benefit greatly. The government wants to counteract this and skim off the excess profits.