Brussels, 28/11/2013 (Agence Europe) - Gas and electricity prices rose significantly in 2012 according to the latest market monitoring report, which was presented on 28 November by the EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER). On average, electricity prices for households increased by 4.6% in 2012, and gas prices increased by 10%. Price regulation did not prevent an increase in electricity and gas bills.
“The advantages brought about by the single market, such as lower wholesale electricity prices or a more efficient use of interconnectors (…) still have fully to benefit final consumers in the retail market”, says the chair of ACER's board of regulators and president of CEER, John Mogg. ACER director, Alberto Pototschnig, spoke of the need to complete the internal energy market as quickly as possible, while removing barriers to retail competition. This objective could be achieved by 2014 if the third liberalisation package is fully implemented and network codes adopted. “Any delay will cost European consumers billions of euro annually”, he stated.
The two organisations reiterate the benefits of switching supplier, but they recognise that this opportunity is not available in countries where competition remains insufficient. In fact, network charges, taxes and other administratively set charges, including those to cover the costs of renewables support schemes, reduce the fraction of the overall energy price on which retailers can compete, ACER and CEER state. This situation is aggravated by rising commodity prices in the gas sector. And even when competition operates in the markets of a growing number of countries, most consumers show inertia due to a lack of awareness, consumer loyalty or risk aversion.
With regard to progress in integration, ACER and CEER identify progress in price convergence on European wholesale gas and electricity markets and a more efficient use of the network - with the average utilisation rate of the high-voltage grid increasing from 60% to 76% between 2010 and 2012. However, the challenge posed by the integration of renewables is leading to a decrease in the degree of price convergence when compared with the previous year in some areas of Europe. (EH/transl.fl)