The pandemic and Russia’s invasion of Ukraine have both impacted electricity prices in Europe, causing bills to rise by almost 40%, compared to pre-pandemic costs. In 2019, Europeans paid around 21 cents on average for one kilowatt hour (kWh) of consumption, compared to an EU average of 29 cents in 2023. Electricity costs are particularly high in the Netherlands, where consumers pay 45 cents per kWh, Belgium (42 cents) and Germany (43 cents), according to Eurostat figures.
In France, however, consumers benefit from cheaper electricity rates than the European average, paying 22 cents per kWh - nearly half of its neighbours’ charges in Belgium and Germany.
But Luxembourg has it even better, benefiting from the low cost of 19 cents per kilowatt hour. The reason? Taxes.
In 2023, taxes account for nearly 20% of European household electricity bills. But some countries apply a negative tax to reduce energy costs for citizens, as is the case in Luxembourg, where a negative tax of -35% helps to cut down on electricity bills. Ireland and Portugal employ the same practice, with negative taxes of -41% and -27% respectively.
Kosovo, Georgia and Bosnia and Herzegovina pay the lowest prices, with respective rates of 7 cents, 8 cents and 9 cents.
