In the list of the cheapest markets in Europe by price electricity paid by households in the fourth quarter of 2022 includes Hellas, and at the same time ranks first among the most expensive wholesale markets. The significant discrepancy between the wholesale and retail price of electricity is the result of a bold subsidies which were largely covered by producer surpluses in the wholesale market with the introduction of the ceiling from July.

According to the EE Report on Events in Europe electricity market in the fourth quarter of 2022, the average electricity price at the European level increased by 21% to 29.5 cents/kWh compared to the corresponding quarter of 2021. Greek households paid per kilowatt-hour well below the European average, by 17.07 minutes. The lowest electricity prices were for households in the Netherlands (8.4 cents/kWh), Bulgaria (11.3 cents), Hungary (12.2 cents) and Malta (14.7 cents). Consumers in Denmark paid the highest price (62.4 cents), followed by Italy (61.2 cents) and Belgium (43.2 cents).

Reinforcement

Greece owes its place in the list of cheap countries, based on the retail price of electricity, solely to government subsidies, since otherwise it is one of the most expensive markets in Europe at the wholesale level, where the real cost of electricity is formed.

In the fourth quarter of 2022, the Greek market was the most expensive in Europe with a MWh price of €246, while the average European price was €187/MWh, 45% less than in the third quarter of the same year. In fact, the Greek market is listed as an exception in the Commission’s report, as prices continued to rise during the quarter compared to the rest of Europe, peaking at €414/MWh on 14 December.

The Greek market owes this first place to the fact that the fuel balance is largely based on natural gas, as well as to the convergence of prices with the also expensive Italian market, also due to the high dependence of its production on natural gas. , factors that are also highlighted in the Commission’s report. Another factor that is not mentioned in the report is the introduction of a €10/MWh charge on natural gas used for electricity generation from 1 November, which results in a double burden on the cost of megawatt-hour of electricity produced. The second most expensive market on a quarterly basis is the Italian market with a price of 245 EUR/MWh.

For the full year (2022), Italy tops the list of most expensive markets at €304/MWh, followed by Malta, sharing only Italy with €294/MWh. MWh, Greece at €279/MWh and France at €275/MWh.

Greeks paid in the fourth quarter of last year per kilowatt-hour well below the European average, by 17.07 minutes.

Case of France

The case of France reflects one of the major shocks caused by the energy crisis. Low nuclear power production has turned France from a net exporter of electricity to a net importer not only from Spain but also from other Member States and the UK, driving up prices, the Commission report notes. In contrast, in Germany the price has been kept below 200 EUR/MWh due to the use of nuclear and coal plants, which have replaced the costly production of natural gas.

The average wholesale price in Europe in 2022 was 230 EUR/MWh, 121% higher than in 2021 and significantly higher than international competitors. In Japan, the average electricity price in 2022 was 163 EUR/MWh, in Korea 146 EUR/MWh, in Turkey 141 EUR/MWh, in Australia 116 EUR/MWh and in the USA and India 69 EUR/MWh.

Spot gas prices in Q4 2022 in Europe averaged 95 EUR/MWh, 52% lower than in the previous quarter (Q3 2022) and only 1% higher than prices in Q4 2021 .

In 2022, TTF natural gas prices rose on average 161% higher than in 2021, and CO2 emissions allowances increased by 50% compared to the previous year.

A 17% reduction in French nuclear production in 2022 and a 17% reduction in hydroelectric production in Europe as a whole due to drought led to a 3% increase in fossil fuel production.

green energy

An important factor in price containment was the contribution of wind and solar energy, the generation of which increased by 14% in 2022. An additional 76 TWh of wind and solar generation covered more than 40% of the gap created by the reduction of hydro and electricity. total nuclear (-179 TWh). Finally, a mild winter reduced demand by 73 TWh. Overall electricity demand fell by 3% in 2022 compared to 2021.