New research reveals that Czech Republic has seen the 3rd biggest increase in electricity bills in the last five years.
The research, by BOXT, looks at Government data on electricity and gas prices from the past five years to analyse the impact of the worsening cost of living crisis and discover which countries have had the biggest year-on-year increase in energy prices.
Norway is the country with the biggest increase in electricity prices worldwide – 91% increase in electricity cost in pence/kWh since 2016. To help residents cope with rising energy prices, the Norwegian government is covering 80% of the portion of electricity price that exceeds NOK 0.70 per kWh at least until March 2023. From October to December of 2022, that percentage has increased to 90%.
The second highest electricity rises are in Finland – Since 2016, Finnish residents have seen their electricity bills increase by almost two-fifths (37%) on average. To combat soaring prices, the government in Finland recently cut electricity VAT from 24% to 10% and also announced plans to offer €10 billion of liquidity guarantees to the energy sector, in an effort to prevent a nationwide financial crisis.
Tied in third place are the Czech Republic, Denmark, and the United Kingdom with 35% increases in electricity prices. The unit price for electricity in these countries has risen by over a third (35%) in the last five years. In the UK we found there was a 35% increase in the average unit price from 14.35 pence/kWh to 19.31 pence/kWh. The British government has introduced some measures to help domestic consumers cope with price surges, such as the cap on gas and electricity charges and the £400 non-repayable bill discount to eligible households over winter.
Denmark has witnessed the highest price increase in gas unit charges in the last five years. From 2.44 to 4.61 pence/kWh, the average price has risen by 89%. Denmark is also one of the countries with the highest increases in electricity prices over the past five years. To help consumers, the government in Denmark has announced a scheme to replace individual gas heating systems. It has been estimated that up to half of Danish homes that are currently heated with natural gas could be switched to district heating by 2028.
Not far behind, Sweden ranks second as one of the countries with the biggest gas price increases. Over the last five years, the average cost of gas has risen 88% from 5.08 to 9.54 pence/kWh. To help Swedish citizens with rising energy costs, the Swedish government introduced a compensatory payment of a sum between SEK 100 and SEK 1,000 for many qualifying households.
Those living in Greece are experiencing higher gas price increases than most other countries we looked at. In the last five years, the average price for gas has risen by almost half (47%) from 4.07 to 5.99 pence/kWh. The Greek government has spent around €7 billion in energy subsidies since September 2021 to help domestic consumers, businesses and farmers afford rising electricity and gas bills.
Further insights:
- The United Kingdom has the highest electricity prices overall, with Brits paying 19.31 pence per kWh. Much like the rest of the world, prices have increased due to reduced supply from Russia due to the Ukraine conflict, as well as the after-effects of the coronavirus pandemic.
- Denmark has witnessed the highest price increase in gas unit charges in the last five years. From 2.44 to 4.61 pence/kWh, the average price has risen by 89%. Denmark is also one of the countries with the highest increases in electricity prices over the past five years.
- Spain ranks third for both the highest costs for electricity and gas prices in the world. Spain is paying an average of 18.51p per kWh for electricity. Recently electricity prices in Spain hit a historic high and were recently capped at €130 (£112) per megawatt hour, down from €210 (£181). Also, the third highest cost when it comes to gas, at 6.18p per kWh.
