Energy prices in Romania are among the highest in the EU, relative to standard purchasing power

Electricity and gas bills fell in the EU in the second half of 2023, after a massive rise in 2022 triggered by Russia’s invasion of Ukraine, Eurostat data showed on Thursday. Romania is among the countries with the lowest prices for electricity and gas supplied to the population, but the ranking changes strongly if we compare them according to the Purchasing Power Standard (PPS).

Standard Purchasing Power a fictitious common monetary unit, used by Eurostat, in which national accounts aggregates are expressed.

Cheap energy for domestic consumers, but more expensive for industrials

Regarding the price of electricity for household consumers, Romania ranks fifth in the EU for the cheapest electricity, after Hungary, Bulgaria, Malta and Croatia. In the case of the one supplied to industrial consumers, Romania is in the middle of the ranking, on the 11th cheapest electricity.

Regarding natural gas, Romania is even better, ranking 3rd for household consumers, after Hungary and Croatia, and 4th for industrial consumers, after Austria, Croatia and Poland.

We have among the highest prices compared to Standard Purchasing Power

Compared to the Standard Purchasing Power, in Romania they are among the highest prices, with 34.35 PPS/ 100 KWh.

EU countries are grouped into six electricity price categories, ranging from over 35 PPS per 100 KWh to below 15 PPS per 100 KWh. Romania is in the second category, with 34.35 PPS/ 100 KWh. Electricity prices based on PPS were highest in the Czech Republic (38.7) and Cyprus (37.9).

The lowest electricity prices based on the purchasing power standard were observed in Malta (14.3) and Luxembourg (15.4).

Regarding gas, according to the Purchasing Power Standard, Romania is better than in the case of electricity, being in the middle of the ranking, in the fourth category, with 10.04 PPS/ 100 kwh.

There are six categories of gas prices, from over 15 PPS per 100 KWh to below 6.5 PPS per 100 KWh. Gas prices for 100KWh, expressed in the purchasing power standard, were the highest in Latvia (19, 32 PPS), Sweden (17.85 PPS) and Portugal (16.3 PPS). The lowest gas prices based on PPS were observed in Hungary (5.1 PPS) and Luxembourg (6.5 PPS).

Which are the countries with the most expensive energy?

For EU household consumers, electricity prices in the second half of 2023 were highest in Germany (€0.4020 per KWh), Ireland (€0.3794 per KWh), Belgium (€0.3778 per KWh) and Denmark (0.3554 EUR per KWh).

The lowest prices were observed in Hungary (0.1132 EUR per KWh), Bulgaria (0.1192 EUR per KWh) and Malta (0.1279 EUR per KWh).

For German household consumers, the cost per KWh was 41% above the EU average price, while households in Hungary, Bulgaria and Malta paid less than half the price of the EU average.

Gas prices for household consumers were the highest in Sweden, Ireland and the Netherlands and the lowest in Hungary, Croatia and Romania.

The price of natural gas for households in Sweden (€0.2070 per kilowatt hour (KWh)) was more than six times the price in Hungary (€0.0335 per KWh) and 84% higher than the EU average price (0. 1125 EUR per KWh).