Rising fuel and electrical energy payments: How does the UK examine with Europe?

Vitality payments within the UK will leap by 80% this winter, the nation’s vitality regulator Ofgem introduced right now, because the Ukraine struggle continues to drive up costs.  

The hike means the typical family pays €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 — until the federal government steps in. 

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

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

Electrical energy costs

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

Even earlier than right now’s hike was introduced, UK households confronted a few of the highest costs in Europe — almost double France. Solely the Czech Republic was increased than the UK, which was adopted by Italy and Estonia. 

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

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

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

To standardise the info — and so make a comparability doable — the costs are adjusted to buying energy requirements (PPS), which eliminates the value degree variations between international locations through the use of a synthetic widespread forex.  

Gasoline costs

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

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

Bulgaria, the Netherlands and Greece are on the unlucky prime spot, with households grappling with vitality costs means above the European common. 

The UK, which doesn’t import a single whiff of fuel from Russia, lies in the course of the chart, though the current worth hike is about to push the nation in direction of the higher finish of the pile. 

So what are European international locations doing about it?

Vitality costs are rising in each European nation, although the fallout for individuals is just not the identical. 

That is largely on account of governments stepping in to try to defend households from the seemingly endless surge in fuel 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 value will increase. 

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

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

However the state of affairs is just not the identical in different main European international locations. 

France

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

However France has stepped up its sport on the supply, forcing the nation’s state-owned vitality supplier EDF to restrict electrical energy wholesale worth rises to 4% a 12 months. 

This is likely one of the the reason why the French have a few of the lowest fuel and electrical energy costs, as outlined within the above charts. 

Nevertheless, the nation’s largest supply of vitality is nuclear, that means it’s much less affected by spikes in fuel and oil costs. 

The federal government’s intervention is predicted to price France €8.4 billion.

Germany

Germany, which is closely reliant on Russian vitality, has pledged to scale back taxation on pure fuel from 19% to 7%, on prime of measures aimed toward slicing vitality consumption. 

The German authorities additionally accepted two aid packages totalling €30 billion to assist its residents with rising vitality costs this 12 months.

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 dwelling disaster and enhance the nation’s inexperienced credentials. 

German households will nonetheless pay virtually €500 extra a 12 months for his or her fuel on account of a brand new levy — to be imposed from October — serving to utility corporations cowl the price of changing Russian provides.

Italy

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

This got here on prime of an additional €35 billion put aside since January to combat the price of dwelling disaster.

Italy has additionally introduced its intention to tax corporations taking advantage of increased vitality costs, whereas selling a worth cap at a European degree to assist include worth spikes.

Hungary

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

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

Vitality costs have been frozen in Hungary for nearly a decade, with households having a few of the lowest fuel and electrical energy payments in Europe since 2013. 

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

Vowing that Hungary can have sufficient, Orban has signed new fuel offers with Russia, scary the ire of European leaders. 

Spain

Like Italy, Spain has taxed vitality corporations raking in big earnings from the current vitality worth 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 vitality from 21% to 10%, whereas additionally slicing an current tax on electrical energy from 7% all the way down to 0.5%.

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

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