Converging electricity prices in manufacturing industry

28/04/2003 10:00

In the last ten years the range in electricity prices paid by the manufacturing industry in north-western Europe has become substantially smaller.

This convergence is the consequence of prices reductions in Germany of nearly 27 percent. In 1993 German electricity cost significantly more than that in the Netherlands, Belgium, Denmark, France and the United Kingdom. The price in Denmark, which was lowest in 1993 rose considerably, by 36 percent.

Electricity prices for manufacturing industry

Netherlands in the middle bracket

Prices in the Netherlands and the United Kingdom have fluctuated in the last ten years. These countries constitute the middle bracket. The price in Belgium has remained fairly constant and on the high side. France has reported a steady decrease in prices, and has had the cheapest electricity since 2000.

In 1993, the price for the consumption of 2 million kWh varied between 5.1 and 9.2 eurocent per kWh in the above-mentioned countries. In 2001 this price range was 5.4 and 7.4 eurocent per kWh. The Netherlands was in the middle bracket in 2001, with a price of 7.0 eurocent per kWh.

Government levies

Government levies constitute a small component of the total electricity price. In 2001 these levies accounted for the largest parts of the total price in Denmark and the Netherlands at 11 and 9 percent respectively. Levies in France and Belgium were either very small, or did not exist at all. Germany and the United Kingdom were between these two extremes with levies of around 5 percent.

Ruud Luijendijk