Electricity tariffs: how much do people pay for electricity in Ukraine and EU countries

According to hvylya.net: Ukraine has abolished the differentiated electricity tariff. In conditions of energy instability, electricity tariffs remain one of the most important issues for both Ukraine and the European Union. An analysis of electricity prices shows that Ukrainians pay less for electricity than residents of most European countries, reports Novosti.LIVE.

New fixed tariff

As of June 1, 2023, a unified fixed tariff of 4.32 UAH (about €0.09) per kWh applies in Ukraine, regardless of consumption volume. This decision abolished the previous model of the differentiated tariff, which provided for a lower cost for the first 250 kWh per month.

The new tariff was introduced in the context of martial law, partial destruction of energy infrastructure, and the rising costs of electricity generation and supply. According to the government, the price increase enables a stable operation of the energy system and prepares it for peak loads in the autumn-winter period.

Electricity prices in the EU

According to Eurostat, electricity prices in EU countries vary significantly. The lowest tariffs are in Hungary and Bulgaria - €0.08 per kWh. In Croatia, Slovakia, and Malta, residents pay €0.12 per kWh. The average EU tariffs are recorded in Romania and Poland (€0.14), Sweden (€0.15), Slovenia (€0.16), Portugal and Estonia (€0.17). Slightly higher prices are in Lithuania (€0.18), Latvia, Spain, Denmark, and Greece (€0.19), as well as in Finland (€0.20). More than 20 euro cents per kilowatt-hour are paid by residents of Cyprus (€0.21), France and Italy (€0.22), Belgium and the Czech Republic (€0.25), the Netherlands (€0.26), Austria (€0.27), Germany (€0.28), and Luxembourg (€0.30). The highest electricity cost is in Ireland - €0.37 per kilowatt-hour.

Differences in tariff systems

It's important to note that unlike in Ukraine, where the population pays only for consumed kilowatts, in EU countries there are various additional fees that affect the final cost. These may include state and local taxes, network development fees, and compensations for renewable energy sources. Additionally, the price is influenced by electricity consumption at certain hours of the day (peak, off-peak, nighttime) and consumption volumes, which are not present in the Ukrainian tariff system.

Ukraine has decided to abolish the differentiated electricity tariff and replace it with a unified fixed one. This decision has led to an increase in electricity prices but should ensure stable operation of the energy system under martial law and substantial costs for energy generation. Compared to EU countries, Ukrainians pay less for electricity, although significant differences remain in the impact of additional fees on the final cost in the tariff system.