ACER has updated its data dashboard, which tracks monthly changes in household energy prices across EU Member States and Norway from January 2019 to December 2024.
The dashboard provides valuable insights for policymakers, consumer protection groups, and EU citizens by highlighting trends in end-user electricity and gas prices, supporting informed decisions on energy affordability and system costs.
What are the key findings?
Electricity prices: In 2024, household electricity prices decreased by 5% compared to 2023. This was mainly due to a 17% fall in the energy component of prices. However, this decline was partially offset by higher network costs and the phasing out of certain subsidies. In Q4, prices and their composition remained steady, showing no significant changes compared to the previous quarter.
Gas prices: Similarly, household gas prices fell by an average of 7% in 2024, driven by the 20% drop in the energy component. Removal of subsidies contributed to a rise in the tax component, partially offsetting the decrease. In the last quarter, the average end-user gas prices slightly increased.
What lies ahead?
The drop in energy costs reflects the impact of Europe's growing use of renewable energy. However, as renewable energy generation expands, there will be a need for substantial investment in energy infrastructure, which could lead to higher network costs in the future.
The European Commission’s upcoming Action Plan on Energy Affordability will be key in addressing these challenges. The current trends highlight the importance of looking at the overall costs of the energy system (including network and infrastructure expenses), rather than focusing solely on commodity costs.
ACER will continue updating the dashboard quarterly to monitor the developments in energy affordability for European consumers.
Brief
"On January 2025, the European Union Agency for the Cooperation of Energy Regulators (ACER) issued an update regarding ACER’s data dashboard provides insights into EU household energy price trends. The data shows a decrease in electricity prices by 5% and gas prices by 7% in 2024, primarily driven by reductions in energy costs."
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Purpose
The purpose of this update is to inform stakeholders about the changes in household energy prices across EU Member States and Norway, as tracked by ACER’s data dashboard from January 2019 to December 2024. The updated information provides valuable insights for policymakers, consumer protection groups, and EU citizens to make informed decisions on energy affordability and system costs.
Effects on Industry
The drop in electricity and gas prices has a positive impact on the energy industry, particularly for consumers who rely heavily on these energy sources. However, the future investment needs for energy infrastructure could lead to higher network costs, which might offset some of the benefits. This development could also affect businesses that rely on stable energy prices to operate efficiently. Furthermore, the European Commission’s upcoming Action Plan on Energy Affordability will be crucial in addressing the challenges related to energy affordability and system costs.
Relevant Stakeholders
The stakeholders affected by this update include policymakers, consumer protection groups, EU citizens, energy companies, businesses that rely on stable energy prices, and organizations involved in energy infrastructure development. These parties should take note of the changes in household energy prices and consider the implications for their respective interests.
Next Steps
To comply with or respond to this update, stakeholders are advised to monitor ACER’s data dashboard quarterly for further developments in energy affordability for European consumers. Policymakers and consumer protection groups should also engage with the European Commission’s Action Plan on Energy Affordability to ensure that their interests are represented and addressed effectively.
Any Other Relevant Information
Historically, EU Member States and Norway have made significant strides in transitioning towards renewable energy sources, which is reflected in the drop in energy costs. However, this shift will require substantial investment in energy infrastructure, highlighting the need for a comprehensive understanding of the overall costs of the energy system. By considering these complexities, stakeholders can make more informed decisions about energy affordability and system costs, ultimately benefiting European consumers.
