How do UK energy costs compare to the rest of Europe?

Energy costs in the UK simply continue increasing … and up.

Following news that October will see Ofgem’s rate cap skyrocket to ₤ 3,549 for a typical yearly costs, and projections of an even greater walking from January 2023, numerous are truly feeling the expense of living pinch.

You may be questioning what the energy rate scenario resembles over in Europe, in nations such as France and Germany– as you mull over the readily available aid or make strategies to cut your use.

Here is how the UK compares to the rest of Europe.

What are energy costs like somewhere else in Europe?

The UK is paying the 2nd greatest quantity of electrical power in Europe, just topped by the Czech Republic, according to the Household Energy Price Index (HEPI).

It can be hard to do a direct contrast of energy costs throughout nations, so HEPI took a look at home electrical power and gas expenses in European capital cities in July 2022, concentrating on the typical rate per kWh.

HEPI utilizes a synthetic currency called buying power requirements (PPS) to develop a more precise contrast.

The most current figures in July reveal the UK is paying more than 51.85 pps per kWh of electrical power, simply under Czech Republic’s 52.15 pps.

To compare, France is paying 23.2 pps for kWh, and Germany 35.93 pps.

The information likewise reveals the most affordable nations for electrical power are Malta (1395 pps), Switzerland (138 pps), and Norway (1283 pps).

As for gas, it’s a somewhat various image. Using the very same criteria, the UK falls in the middle of the table (at 15.21 pps)– and lags table-topper Bulgaria (2482 pps), The Netherlands (2454 pps), Czech Republic (2012 pps), and Germany (1551 pps).

However, the UK’s gas expenses are still above the European average they have actually determined and been available in more pricey than Belgium (3613 pps), France (232 pps), or Ireland (2826 pps).

Hungary– which in late August 2022 signed a brand-new offer for gas with Russia’s Gazprom supplier– was the really most affordable in July (at 4.32 pps), with Serbia (5.99 pps), and Slovakia (6.52 pps) close behind.

Why are UK energy costs so high today?

The expense of energy has been increasing all over Europe, however why is it so high in the UK?

Wholesale costs for gas have actually been increasing given that in 2015– pressing lots of UK energy business out of organization (though stated costs did experience a drop towards completion of August 2022).

The upped expense is because of a post-pandemic increase in need for energy, along with the war in Ukraine– as Russia is among the world’s most significant gas suppliers– which has actually produced instability in the energy market.

In the UK, we do not count on Russian gas as much as other European nations do (simply over 3% to their 40%), though we do count on gas a lot.

We likewise have couple of locations to save it, implying the UK purchases more in the short-term– and we likewise have less nuclear and renewable resource sources than other parts of Europe, MarketWatch describes.

Robert Buckley, Head of Relationship Development at Cornwall Insight, formerly informed Metro co.uk: ‘One of the most significant contributors to energy market volatility is the war in Ukraine, for which there is of course no timetable for a resolution.’

He included that it’s ‘difficult’ to forecast when energy costs may drop, keeping in mind: ‘Our rate forecasts [for] later on in the years have actually decreased a little, however they stay above pre-2021 levels till 2030 and most likely beyond.

‘The increase in renewables deployment in Europe due to the conflict in Ukraine has helped push our price predictions down slightly.’

MORE: When could energy costs decrease?

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MORE: What occurs if I can’t pay my energy expenses in the middle of expense of living crisis?

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