BAKU, Azerbaijan, October 18. Estimated retail gas prices for industrial customers in Europe rose measurably, by 126 percent in Q2 2022 year-on-year in the EU on average, and the average estimated price (VAT and other recoverable taxes excluded) in consumption Band I4 was 5.5 Eurocent/kWh, up by 8 percent compared to Q1 2022, Trend reports October 18 with reference to the European Commission.
The Commission’s report reveals that with the exception of three countries, in all other 21 observed countries (data were not available for Cyprus, Luxembourg and Malta) price increases could be observed year-on-year.
“It seems that price rises on wholesale gas markets have already appeared in the retail prices for industrial customers in Q2 2022, having an average annual consumption. Price increases could also be observed for industrial customers having larger annual gas consumption (in Band I5 and Band I6 bands increases of 184-199 percent could be observed in Q2 2022, year-on-year). Significant price increases for energy intensive industries meant bigger production costs, leading to decrease (or shut down) in production and/or increases in the final product prices,” the report says.
Reportedly, for household consumers, the estimated average retail price in Q2 2022 in the EU (including all taxes) showed a significant increase of 62 percent in year-on-year comparison, and compared to the previous quarter, Q1 2022, the average price went up by 8 percent.
“In the most typical consumption Band, D2, in the second quarter of 2022 the estimated average price (including all taxes) was 10.4 Eurocents/kWh, up from 9.7 Eurocents/kWh in the previous quarter and from 6.4 Eurocents/kWh in Q2 2021. (See the estimated household prices on Map 2). It is important to recall that substantial retail gas price increases occurred in the second quarter of 2022, implying that a significant part of the wholesale price increases of the first half of 2022 must have probably appeared in the final retail prices, looking merely at the magnitude of retail price changes.”
---
Follow the author on Twitter: @Lyaman_Zeyn