A significant increase in prices for energy first occurred in late 2021, as the world’s economy recovered after the Corona pandemic lockdowns. The Russian invasion into Ukraine in February 2022 however proved to be a catalyst for energy prices worldwide and European countries in particular.
All energy consumers are impacted by price hikes. Industries carry the consequences as they may have to scale down manufacturing and increase prices of their products. The impact on households is felt quite literally as people turn down the heater to save on their energy bill.
Impact on households
We know the prices for energy put a significant burden on the budgets of European households, but to which extent?
The diversity in households, income and energy consumption is obviously great, but we found the reliable averages. The results provide great insights:
The percentage that indicates the share of energy costs on an average household based on the energy prices for the referenced month.
Households - November 2022
1) Average net disposable income per household per year in Euro
2) Average total consumption of energy per household per year in Kilowatt-hour (kWh)
3) Share (percentage) of energy costs on the net household income
- Net average household income (Eurostat)
- Average annual energy consumption per household (Eurostat)
- Share of the various energy (energy mix) consumed by households (Statista)
- Price data for heating oil (Globalpetrolprices.com)
- Current prices for electricity and natural gas (Energy Prices)
- Most recent data on household income is for the year 2021. 3-5% was added for 2022.
- Fixed – variable energy contract ratio: 70-30.
- United Kingdom energy price cap included
- Direct monetary compensation not included
- Currencies of non-Eurozone countries converted to Euro
For underlying data, please contact our office.