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The “misguided sanctions” and “high carbon pricing” imposed by Brussels’ revised EU Emissions Trading System have led to a rise in energy prices on the market, that has also affected consumer prices in most member states. The rise in utility costs poses a serious existential challenge for a large proportion of EU households, in stark contrast to Hungary, found a study by Századvég.
The energy crisis, sanctions, and exceptionally high CO2 pricing worldwide have led to a significant increase in prices on European electricity and gas exchanges, writes the latest Századvég study. In EU member states where tariff regulation for private households is lax, market processes have also increased household energy costs, with the result that the average EU citizen now has to pay significantly higher electricity and gas bills than, for example, an American, reads the analysis.
Electricity and gas prices for private households in the EU and the United States. EU electricity, U.S. electricity (left); EU gas, U.S. gas (right). Source: szazadveg.hu
The findings of the Századvég study show that the rapid and drastic rise in utility costs has led to serious existential difficulties for large sections of the population across Europe. Twenty percent of the EU population cannot heat their homes adequately, and 28 percent were unable to pay their electricity and gas bills last year for financial reasons, the research institution reported.
Percentage of those who answered “no” to the question of whether they can heat their homes adequately, by country. Source: szazadveg.hu
The analysis explains that the differences between member states are mainly due to different tariff regulations and the adaptability of households.
The proportion of households with heating difficulties is lowest in Hungary (5%), followed by Finland (10%) and Luxembourg (12%).
In France (28%), Cyprus (30%), and Greece (45%), on the other hand, the proportion is highest.
When asked whether they had not had enough money to pay their electricity bills on time in the last 12 months, there were also significant differences among EU countries. The proportion of those who have difficulty paying their bills is lowest in Hungary (14 percent), followed by Austria and Sweden (21 percent each). At the bottom of the list – similar to the heating problems – are Greece (45 percent) and Cyprus (40 percent), followed by Ireland (39 percent).
Percentage of respondents who answered “yes” to the question of whether they had been unable to pay an electricity bill on time in the last 12 months due to a lack of money, by country. Source: szazadveg.hu
The favorable data for Hungary is primarily due to the program to reduce utility costs, ensuring the lowest tariffs in the EU through strict state price regulation. It should be noted that in Finland, the proportion of wood heating systems is high, and their costs have risen significantly less than gas or electricity in recent years. In Luxembourg, on the other hand, high incomes offer protection to a broader section of society.
In contrast, infrastructure and income-related conditions are worse in southern countries, and their governments have also been unable to offer private consumers sufficiently effective tariff protection. According to Századvég, it is significant that even in France—despite being one of the EU’s strongest economies—tariff increases posed a serious existential challenge for large sections of the population, primarily due to the high proportion of electric heating and low energy efficiency.
Via szazadveg.hu, Feature image: MTI/Komka Péter
The post Recent Study Shows Growing Number of EU Households Struggling to Heat Their Homes appeared first on Hungary Today.
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