Change Dynamics of Electricity Prices for Households in the European Union between 2011 and 2020

Abstract

The aim of the article: The aim of the article is to evaluate and analyze the dynamics of electricity prices for households in the European Union member states (EU-27) in the period 2011–2020. The study also focuses on the key components of electricity prices in the countries analyzed. The discussed issues are important from the socio-economic point of view. It refers to the issue of sustainable development, where electricity prices are addressed in relation to the problem of energy poverty of households.
 Methodology: The study is of a theoretical and analytical character. In addition to the review of available dnational and foreign literature, Eurostat data on electricity prices for households in the EU-27 were analysed. Moreover, the paper presents the application of a selected cluster analysis method, i.e. the k-means method, to assess the situation of the EU-27 countries in terms of electricity prices for households in the analysed period of 2011–2020.
 Results of the research: The result of the analyses undertaken is a presentation of the share of VAT and other taxes and levies in the price of electricity for households. The analyses showed differences between the countries in the structure of establishing the electricity price for households. Only in three countries (Bulgaria, Hungary, Slovakia) it was found that there was no share of other taxes and levies in the electricity price. In turn, the applied k-means method contributed to obtaining the division of countries into four groups reflecting the differentiation in terms of the amount of electricity price for households in the period under study.

Energy Sector’s Green Transformation towards Sustainable Development: A Review and Future Directions

“…Scientists were pointing out the relationship between the current state of the energy sector and its impact on the environment [75,76]. Other recently popular subjects are energy security, renewable energy, and green economy, because the energy sector is key to the transformation of the hitherto brown economy [77,78]. The "investments" are needed to change the current energy system [79,80], and next to the Sustainable Development Goals (described in Agenda 2030), the transformation of the energy sector [81,82], as well as the sources of generated energy in general, occupy an important place in the context of changes aimed at global sustainability in the energy sector.…”

Differences in the Structure of Household Electricity Prices in EU Countries

“…The following components are listed here: electricity price, VAT, and other taxes and charges. Studies using these components are described in [65,66]. The authors of [65] studied the impact of electricity prices on energy intensity in Europe, while [66] presents the share of VAT and other components in the price of electricity for households.…”

“…Studies using these components are described in [65,66]. The authors of [65] studied the impact of electricity prices on energy intensity in Europe, while [66] presents the share of VAT and other components in the price of electricity for households. For the EU27 countries in the period of 2011-2020, the k-means method was used to divide the countries into four groups based on the price of electricity for households in euro cents per kWh.…”

Models of Electricity Price Forecasting: Bibliometric Research

“…On the other hand, electricity is a very special commodity, because it is "economically non-storable, and power system stability requires a constant balance between production and consumption" [9]. Electricity price is hard to forecast because of the unanticipated price dynamics [26,27] and specific characteristics of the market [28,29]. The development of the methods represented in citation dynamics, or the number of newly published papers, indicates the importance of the subject and is the reason for this research.…”