Ea Energy Analyses has made a new study of the development of the electricity prices since 1995 for the Danish Energy Agency. The study describes the development of electricity prices from 1995 to 2009 in various consumer groups and discusses to what extent the development can be explained by the liberalisation of the electricity market. Focus is on prices before taxes.
Households experienced the greatest price increase
According to the report, electricity prices for households calculated in fixed prices increased by 42 per cent from 1995 to 2008/2009. For industry, electricity prices increased by 11 per cent. In 1995 electricity prices for households were 33 per cent higher than for industry. By 2008/2009 this difference had grown to 70 per cent.
Fall in electricity prices for industry
When adjusted for the increase in coal prices, the effect of the CO2 quotas and the price-reducing effect of subsidised electricity production, electricity prices for households increased by 21 per cent from 1995 to 2008/2009 while industry experienced a 16 per cent price reduction.
Recommendations
One option is to change the regulation of the default supplier electricity price. This would result in a 10-15 per cent price fall (indirect taxes not included). Furthermore, it was recommended that the electricity price comparison service (Elpristavlen) should be improved in order to make it easier to switch electricity supplier. Finally, the possibility of tightening the regulation of the energy monopolies and the potential of improving the use of existing remote electricity meters were highlighted.
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