Energy bills in Europe: How much do we pay for taxes?
propagandaThe increase in energy prices yet Russian Ukraine invasion It barely affected families, especially low -income families. Although prices have settled a little, energy bills remain a burden for many. Taxes represent a large part of the costs of gas and electricity, and vary greatly from one country to another from Europe. Some countries provide subsidies or subsidies to help homes.
In these cases, taxes can appear as negative values. What is the percentage of the energy bill that corresponds to taxes, including taxes on energy and fees and Eva? In which countries are more taxes in total? Where do governments interfere with subsidies or assistance plans?
he Energy price index in homes(IPREH)Prepared by Energie-Control, Mekh and Vaasaett, monitor the residential prices of electricity and gas in European capitals. In addition to energy and distribution costs, the collapse shows energy and value -added tax.
In April 2024, the average percentage of total taxes on local electricity prices in European Union capitals was 22 %, consisting of 8 % of energy on energy and 14 % value -added tax. This percentage ranged Between -26 % of Amsterdam and 49 % of CopenhagenFollowed by 41 % Stockholm. The average European Union capitals 22 %.
Negative taxes in Amsterdam and Luxembourg
In Amsterdam, taxes on energy They were -43 %, while VAT was 17 %, which led to an important global tax share. With the exception of this effect, the value -added tax accounts for 17 % of the price collapse.
According to the HEPI report, since January 2020, Amsterdam’s typical consumer pays zero energy Because of the increase in the amount of financial credit, which exceeds the amount of energy tax referred to. On the contrary, they get the excess tax credit amount. The goal is to enhance electrification and give up heating devices and gas. A similar case occurs in a city LuxembourgWhere the power tax is from –13 % And at the value -added tax of 7 %. The goal is to stabilize prices in 2022.
in La Valeta, Nicosia and DublinPart of Taxes in electricity bills It is also relatively low: 11 % or less. In addition to the northern capitals, the percentage of total taxes It exceeds 30 % in other citiesLike Brussels (37 %), Berlin (34 %), Oslo (33 %), Madrid and Hildink (32 %).
Gas taxes exceed electricity in the capitals of the European Union
In the case of gas prices for the residential user, The average tax rate in European Union capitals 28 %, Out of electricity. It ranges from 5 % of Zagreb and 49 % of Amsterdam. In the Dutch capital, the power tax for the natural user of natural gas represents about 32 % of the final price.
Population in Berlin (40 %), Vienna (32 %), Rome and Stockholm (31 %) and Paris (30 %) They face total taxes on the top of the gas, after Amsterdam. Instead, after the Croatian capital, Athens (9 %), Belgrade (9 %) and London (11 %) It records the lowest total tax quotas in residential gas prices.
In Velanis, the typical house receives returning from energy taxes, which leads to negative tax fees on energy energy -5 %.
The main factors for differences in energy taxes
“Energy taxes depend on national policies, environmental plans and various market structures in general,” explained, Rafaa Grigoriou, director of the HEPI project and responsible for the Greek office in Vasit, and Iwanis Curas, the main analyst of the energy market in Fasit.
For example, they indicated that Denmark used high energy taxes as a tool for Green energy transmissionSupporting investment in renewable energy systems (Fer) and enhancing energy efficiency, which made the country a pioneer in wind energy.
The role of national policies in imposing energy taxes is particularly clear in some cases. Grigoriou and Korras confirms that Amsterdam consumers pay the highest natural gas taxes in EuropePaid the national climate policy aims to reduce gas consumption. On the contrary, families receive an important financial discount in their electricity bills. “This aims to encourage the abandonment of gas heating and the promotion of electrification,” they added.
propagandaTax shares compared to nominal costs
When cities or countries are compared, It is important to distinguish between taxes in energy bills and the real amount paid. These are different indicators, because the total amount of taxes depends on the basic price of energy.
For example, the percentage of electricity taxes is 21 % in Rome and Budapest. However, this does not mean that consumers pay the same with the absolute value. In Budapest, 21 % is 1.92 euros/kilowatts an hour, while in Rome reaches 6.8 ° C/kilowatts, a big difference.
Prices of electricity and gas in Europe
The final domestic prices of electricity and gas vary greatly throughout Europe.
propagandaAccording to HEPI, in April 2025, electricity prices ranged between 9.1 mi/kilowatt hour in Budapest and 40.4 EGP/kilowatt hours in Berlin. Gas prices ranged between 2.5 euros/kilowatts an hour in Budapest and 34.1 ° C/kilowatt hours in Stockholm.
When comparing energy prices, it is also important to take into account the purchasing power standards (EPA). Our articlePrices of electricity and gas in Europe“Prices analysis in terms of nominal and modified conditions to the Environmental Protection Agency, and explain the reason for its significantly different from country to country.
