Every 2 years, the European Commission publishes a report on energy prices and costs, which takes stock of the latest trends for gas, electricity and oil prices, as well as other energy costs in Europe and internationally.
The 4th report on energy prices and costs was published in October 2020, as part of the 2020 State of the energy union report. It focuses on progress made on the EU’s policies on the energy transition policies and initiatives related to the European Green Deal, but it also assesses the impact of the COVID-19 pandemic on the recent and expected evolution of the analysed indicators.

In the EU, each EU country can decide its own energy mix, but it has to follow the rules of the internal EU energy market and take into consideration the EU’s climate ambitions. The primary objective of a well-functioning market is to foster a secure supply of energy, produced as sustainably as possible, at affordable prices. The EU energy sector responds to market forces so that energy companies strive to be as competitive as possible.

​Energy prices rise in 2021 and 2022


In the course of 2022, there was a notable increase in EU wholesale energy prices. There were a number of causes, but the prime driver was clearly the rise in the gas price worldwide – a result of the surge in global demand, notably in Asia, as most countries emerge from the Covid-19 pandemic.

This led, for example, to lower volumes of liquefied natural gas imports into Europe. At the same stage, a combination of lower supplies of gas, a longer heating season in 2020-21 and unfavourable weather conditions for producing renewable energy (less sun, less wind) created an unusual undersupply. To a lesser extent, an increased carbon price under the Emissions Trading System (ETS) also contributed to the adverse market situation.

To cope with the possible emergencies caused by a growth in demand, the Commission has suggested to member countries a package of measures in favor of households and businesses. Read below the Communication from the Commission and​ read here.

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2022-2023 EU initiatives for tackling rising energy prices


​As a consequence of the exaggerated growth of energy prices in Europe, both for purely market reasons and as a consequence of the conflict in Ukraine, which has led to a decrease in the flow of fossil products from Russia and speculative pressures), the European Commission has submitted to the Member States various proposals to control prices.
GAS
.The Commission's initiatives for tackling high gas prices go in two directions
:
  1. Reduced gas demand 
  2. Reinforcement of gas storage
  3. Gas price cap



1.  Reduced gas demand

The Commission presented on 20 July 2022 a proposal for a Regulation on Coordinated Demand Reduction Measures for Gas and the Communication “Save gas for a safe winter”, which includes a European Gas Demand Reduction Plan to prepare the EU for supply cuts.  On 5 August 2022, the Council adopted the Regulation on coordinated demand reduction measures for gas on a voluntary reduction of natural gas demand by 15% this winter. It aims at complementing the Regulation on gas security of supply.  It foresees the possibility for the Council to trigger a ‘Union alert’ to issue mandatory gas demand reductions.

2.  Reinforcement of gas storage

The Commission published on 23 March 2022 a proposal for amendment of Regulation (EU) 2017/1938 including measures to deal with the market imbalances for energy and to ensure well-filled gas storage in the EU.  On 27 June 2022, the European Parliament and the Council adopted the Regulation (EU) 2022/1032) on Gas Storage , amending Regulations (EU) 2017/1938 and (EC) 715/2009, and providing that underground gas storage on EU countries’ territory must be filled to at least 80% of their capacity before the winter of 2022/2023 and to 90% before the following winter periods. Overall, the EU will attempt collectively to fill at least 85% of the total underground gas storage capacity in the EU in 2022.

3.  Gas price cap

  • On 30 September 2022, the EU adopted a €180/Mwh. electricity revenue cap for inframarginal producers of electricity such as wind, sola and nuclear.
  • on 18 October 2022, the Commission presented a Proposal for a Council Regulation seeks to tackle excessive energy price levels through different measures that aim to prevent price spikes and manipulation, provide more transparency and stability to the market, and ensure fair prices and gas flows also in a crisis situation. It builds upon measures already in place to reduce demand, ensure alternative supplies, accelerate the roll-out of renewables, and limit the impact of electricity prices for consumers via the inframarginal price cap and the solidarity levy for fossil fuel companies agreed earlier this month.EU gas demand measures. Price cap was announced as an option.
  • On 25 November 2022, the Commission proposed a cap of €275/Mwh, if TTF price exceeds this value for 2 weeks.  Some Eastern countries asked a price cap of €60/Mwh and the EU Czeck presidency suggested €264/Mwh,  if the prices remain above that level for five trading days, instead of two weeks.  The EU's minister didn't an agreement. That week the gas price was 133.

​This issue, will be discussed again on 13 December 2020 in Brussels.

ENERGY PRICES


The dashboard banner brings you to the EU Commission page where a dashboard presents a series of monthly and annual prices.

For electricity and natural gas, these are wholesale prices and retail prices for households (including taxes) and industry (excluding recoverable taxes and duties).

For petroleum products these include the prices of crude oil and the retail price of gasoline, diesel and heating oil (with and without taxes).

The prices currently available are provided for the period 2008-2019 and the prices have been adjusted for inflation and are expressed in terms of Euro 2018 (constant price).​
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ENERGY COST


The dashboard banner brings you to the EU Commission page where a dashboard presents annual energy cost series collected as part of the study on energy prices, costs and their impact on industry and households.

​These cover a selection of 30 sectors at NACE 2 and NACE 3-digit level for section C (Manufacturing) and 13 sectors at NACE 1 or 2-digit level for the other sections for the period 2010 to 2017.

​These sectors were selected based on their energy intensities, levels of trade exposure, and economic relevance.
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