Electricity prices rise above EU average

In the second half of 2022, average household electricity prices in Cyprus rose sharper than the EU average, from EUR 23 per 100 kWh to 32.6 per 100 kWh, while Europe went from EUR 23.5 to 28.4 per 100 kWh, according to Eurostat.

Average gas prices also increased in the EU compared with the same period in 2021 from EUR 7.8 per 100 kWh to 11.4 per 100 kWh in H2 2022. These prices are the highest recorded. After a significant price increase that started before the Russian invasion of Ukraine but skyrocketed in late 2022, electricity and natural gas prices have recently shown signs of stabilising, partly due to policies and interventions by EU governments.

EU countries, including Cyprus, opted for various measures, such as reducing taxes and fees, temporary tax waivers to consumers, price caps, providing lump sum support or allocating vouchers to final consumers, and some countries applied regulated prices.

Compared with H2 2021, the share of taxes in the electricity bill dropped sharply from 36% to 16% (-18.3%) and in the gas bill from 27% to 14% (-15.8%), with all EU countries putting in place governmental allowances and subsidies or reduce taxes and levies to mitigate high-energy costs.

Household electricity prices rose in all EU members except Malta (-3%, in national currencies) and the Netherlands (-7%).

Prices in Malta are regulated, while the Dutch government supports consumers with lump sums and taxes reduction.

The highest increases were recorded in Romania (+112%), Czechia (+97%), Denmark (+70%), Lithuania (+65%) and Latvia (+59%), while the lowest were in Luxembourg (+3%), Austria and Germany (both +4%), and Poland and Bulgaria (both +5%).

Average household electricity prices in the second half of 2022 were lowest in Hungary (EUR 10.8 per 100 kWh), Bulgaria (EUR 11.5) and Malta (EUR 12.8) and highest in Denmark (EUR 58.7), Belgium (EUR 44.9), and Ireland (EUR 42). Meanwhile, gas prices increased during the same period in all EU countries that use natural gas (Cyprus is the only member state that does not).