Energy prices in the majority of European Union states continued to rise
in the second half of last year, mainly driven by higher tariffs and
environmental surcharges, data released by Eurostat showed Monday,
providing ammunition to those Europeans seeking changes to energy
policy.
The average household price for electricity in the 27-nation
bloc rose by 6.6% in the second half of 2012 from the same period a year
earlier. The rise was 6.3% in the latter half of 2011.
Prices rose in all countries except Hungary, where the
government has capped regulated power prices, and in Finland and Sweden.
Household natural gas prices increased by 10.3% year-on-year
in the second half of 2012, after a rise of 12.6% in 2011. Slovenia was
the only EU country where gas prices declined last year.
End-user energy prices are rising quickly despite power prices
for wholesalers falling to record lows and declining consumption by
consumers and industry.
Households, and some businesses, have been hit with rising
energy bills due to the increase in fees related to the rollout of
renewable energy sources such as solar, wind and biomass power
generation--a key element of the bloc's energy policy.
Steadily rising energy prices paired with fiscal austerity
around the EU are holding back European economic growth and in many
cases are leading to economic contractions despite tame inflationary
pressures and historically-low interest rates.
Last week, the chief executives of eight leading European
energy utilities criticized EU leaders for the bloc's fragmented energy
policy. In the same week, EU leaders met for a summit and agreed energy
prices need to be contained if the bloc is to regain competitiveness and
emerge from its economic malaise.