Weekly column SOS Energythe result of the collaboration between Key4biz And SusTariffe. A consumer guide with comparisons of electricity, gas and water prices. To consult all articles, Click here.
Among the professionals, we are starting to discuss the need to introduce a single European electricity price. Pursuing price harmonization and the creation of a single energy market could have important positive effects for the market and, given the data in hand, could lead to a significant savings for Italian consumers who are currently paying a much higher price for electricity than other countries.
It will take several years to unify the European electricity market and create a single price and in the meantime it becomes essential to be able to choose the tariff that best suits your needs. With the continuous monitoring of light offers available on the free market and comparing the proposals of different suppliers can keep costs to a minimum and reduce the burden of electricity bills.
For a quick and effective comparison you can use the SOStariffe.it comparatorwhich allows you to analyze the updated rates of various partner operators.
What is the electricity price situation in the EU?
Currently each country follows different rules to determine the cost of electricity and the price paid by end customers depends on energy mix used for the production of electricity, from local market structure and come on operating costs of the sector.
In Italy the reference price used by ARERA (for the protected market, which from 1 July for non-vulnerable customers will be replaced by the Gradual Protection Service) and by free market suppliers is the PUN, the Single National Priceobtained from the meeting between supply and demand on the Italian electricity exchange.
Comparing the electricity prices in different EU member states there are some very important differences. As reported by Il Sole 24 Ore, Italy is among the European countries that pay the most for electricity. Suffice it to say that during the month of May the PUN reached 95 €/MWh, compared to 27 in France and the Scandinavian countries and 30 in Spain. Even Germany, which bases a large part of its electricity production on coal, has lower costs than our country, with a wholesale energy price that in May was around €67/MWh.
The differences found in electricity bills within the EU are due to how electricity is obtained (electricity of nuclear origin costs less than energy produced from gas, for example), but also from fiscal policies and give it charges charged to final consumers.
Is it worth having a single European energy price?
According to theANIEthe industrial federation of the electrical engineering and electronics sectors, there is a need to intervene to standardize the community electricity market and to remove the divergences that currently exist between EU member countries.
In particular, according to the president of ANIE Filippo Girardi, there is a need for introduce a single European price of electricity and to create a common tax system. By creating an interconnected electricity grid and establishing the same technical standards for all countries, full integration of the sector can be achieved and the conditions can be created to improve the efficiency and safety of the electricity sector.
The introduction of a single European price is certainly an ambitious project that requires addressing profound reforms of the system and defining new rules to standardize the market. Among the main challenges to be faced, for example, are the need to harmonize electrical infrastructuresto establish compensation mechanisms that take into account the differences in the production capacity of member countries and rules that establish which technologies can be used, also taking into account the decarbonisation and incentive objectives for the use of renewable sources.
What can you do to lower your electricity bill
The idea of introducing a single European price requires a thorough market reform and, if accepted, could only become reality in several years. While waiting for the European electricity market to be standardized, we can act to contain bill costs as much as possible and spend less on your own consumption.
Who has not yet switched to free market can compare offers from different providers via the SOStariffe.it comparator and estimate the annual savings you can benefit from by changing your offer.
Based on your habits and level of consumption, you can take into consideration indexed price offersin which the cost of electricity follows the price trend that forms on the wholesale market, or the fixed price ratesin which a fixed price established in the contract and invariable for at least 12 months is applied to consumption.
By comparing the offers of multiple suppliers, checking whether there are promotions and discounts and carrying out a cost simulation based on your average consumption, you can consciously choose the electricity tariff which ensures maximum savings.
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