Soaring energy prices: How does the UK compare with Europe?

Power payments within the UK will leap by 80% this winter, the nation’s power regulator Ofgem introduced on Friday, because the Ukraine battle continues to drive up costs.  

The hike means the common family can pay €4,182 (£3,549) every year to warmth and energy their houses, main NGOs to warn that thousands and thousands will probably be plunged into poverty — except the federal government steps in. 

However how do UK power costs examine to these throughout Europe? 

These infographics present which European households are forking out essentially the most for his or her gasoline and electrical energy payments and people paying the least.

Electrical energy costs

The above chart exhibits how a lot these residing in Europe are paying on common for his or her electrical energy.

Even earlier than at this time’s hike was introduced, UK households confronted among the highest costs in Europe — almost double France. Solely the Czech Republic was greater than the UK, which was adopted by Italy and Estonia. 

Norway, which has giant reserves of oil and gasoline, has the most affordable electrical energy payments, forward of Switzerland and Malta in second and third, respectively. 

Having just lately struck new power offers with Russia, households in Hungary are additionally paying among the lowest charges for his or her electrical energy in Europe.  

The chart relies on knowledge for July and compares costs for households in European capitals. 

To standardise the information — and so make a comparability attainable — the costs are adjusted to buying energy requirements (PPS), which eliminates the worth degree variations between nations by utilizing a synthetic widespread foreign money.  

Gasoline costs

Utilizing the identical methodology because the earlier infographic, this chart compares gasoline costs in Europe. 

Whereas there are some similarities to electrical energy costs — with each Hungary and Serbia paying the least for his or her gasoline — most nations fare otherwise. 

Bulgaria, the Netherlands and Greece are on the unlucky high spot, with households grappling with power costs method above the European common. 

The UK, which doesn’t import a single whiff of gasoline from Russia, lies in the course of the chart, though the latest value hike is ready to push the nation in the direction of the higher finish of the pile. 

So what are European nations doing about it?

Power costs are rising in each European nation, although the fallout for individuals just isn’t the identical. 

That is largely resulting from governments stepping in to attempt to protect households from the seemingly unending surge in gasoline and electrical energy costs. 

The UK — ready to know who its subsequent prime minister will probably be — has been criticised for not doing sufficient to assist individuals deal with the worth will increase. 

In spring the federal government introduced all households will get a £400 rebate on power payments, which means £60 will probably be knocked off power payments each month for six months. 

Nonetheless, power costs have skyrocketed because the measures had been revealed, and from October a typical family will see month-to-month power payments of round £300 a month.

However the state of affairs just isn’t the identical in different main European nations. 

France

France can be providing a one-off fee to its residents to assist them face onerous occasions, although at simply €100 that is significantly decrease than within the UK and Italy.

However France has stepped up its recreation on the supply, forcing the nation’s state-owned power supplier EDF to restrict electrical energy wholesale value rises to 4% a yr. 

This value cap, set to final till 31 December, is likely one of the the reason why the French have among the lowest gasoline and electrical energy costs in Europe, as outlined within the above charts. 

Nonetheless, the nation’s largest supply of power is nuclear, which means it’s much less affected by spikes in gasoline and oil costs. 

The federal government’s intervention is anticipated to value France €8.4 billion.

France’s Minister of Economic system, Bruno Le Maire, stated in August that entry to a €3 billion euro fund for companies unable to satisfy their power payments can be made simpler. 

Germany

Germany, which is closely reliant on Russian power, has pledged to cut back taxation on pure gasoline from 19% to 7%, on high of measures geared toward slicing power consumption. 

The German authorities additionally authorized two aid packages totalling €30 billion to assist its residents with rising power costs this yr.

In the meantime, closely subsidised public transport tickets — at €9-a-month — have been supplied to Germans in a bid to alleviate the price of residing disaster and enhance the nation’s inexperienced credentials. 

German households will nonetheless pay virtually €500 extra a yr for his or her gasoline resulting from a brand new levy — to be imposed from October — serving to utility corporations cowl the price of changing Russian provides.

Italy

In August, Italy authorized a brand new support package deal price round €17 billion to assist shield individuals and companies from surging power prices. 

This got here on high of an additional €35 billion put aside since January to battle the price of residing disaster.

Italy has additionally introduced its intention to tax corporations taking advantage of greater power costs, whereas selling a value cap at a European degree to assist comprise value spikes.

Hungary

Hungary’s authorities has declared a state of emergency over power, tightening guidelines round value caps. 

In what marked a exceptional U-turn on a key coverage, Hungarian Prime Minister Viktor Orban scraped power value limits for high-usage households, although controls stay in place for these utilizing lower than the common. 

Power costs have been frozen in Hungary for nearly a decade, with households having among the lowest gasoline and electrical energy payments in Europe since 2013. 

The common Hungarian’s month-to-month electrical energy invoice is available in at round €19, which might be about 5 occasions extra if the cap was not in place. 

Vowing that Hungary may have sufficient, Orban has signed new gasoline offers with Russia, frightening the ire of European leaders. 

Spain

Like Italy, Spain has taxed power corporations raking in large earnings from the latest power value will increase and pledged to make use of the cash to assist its residents pay their payments.

Madrid has already slashed value-added tax (VAT) on power from 21% to 10%, whereas additionally slicing an current tax on electrical energy from 7% all the way down to 0.5%.

Spain at present enforces a one-year cap on gasoline costs, agreed by the European Fee, which ensures they continue to be decrease than a median of €50 per megawatt-hour.

Comply with Josh on Twitter at @Joshua_E_Askew