°
Ashburn

Identified as the European country with the cheapest electricity

Residents of Liechtenstein in Europe can buy electricity at their average salaries, least of all the people of Moldova, and between them a marked tenfold difference, according to a study by RIA Novosti.

The basis of the ranking of European countries on the availability of electricity for the population is the number of kilowatt-hours that could be purchased on the average wage of the inhabitants of the various countries in late 2019–early 2020. Russia is located in the middle.

Leader on availability of electricity has become the Liechtenstein residents of this small state can afford on the average monthly salary of more than 32 thousand kilowatt-hours per month. In the Principality some of the highest salaries in Europe, and the electricity tariffs are lower than in many economically developed countries. In terms of rubles, the cost of electricity in Liechtenstein is 12.9 ruble per kilowatt-hour.

On the second place by amount of available electricity is Iceland, where residents have the opportunity to purchase on the average monthly salary of 29.5 thousand kilowatt-hours.

In addition to these countries, more than 15 thousand kilowatt-hours per month may be paid by the citizens of Norway, Luxembourg and the Netherlands.

The last place in terms of electricity, which the residents can purchase on average wages, is a Moldova – 3.2 thousand kilowatt-hours, that is 10 times less than in Liechtenstein. Electricity tariffs in Moldova is not very high, but wages are low. One kilowatt hour here costs 7.9 ruble

In addition to Moldova, at the bottom of the ranking of Romania, Latvia and Montenegro. The inhabitants of these countries can purchase up to 5 thousand kilowatts-hours of electricity per month.

Russia occupies in the ranking of European countries on the availability of electricity in 11th place. The average salary of Russians can afford around 12.8 thousand kilowatt-hours.

Russia on this indicator is ahead of neighboring Belarus and Ukraine, however, is inferior to Kazakhstan.

To estimate the cost of electricity for the population, the experts of RIA Rating has analyzed the prices of it in terms of rubles. The lowest value was observed in Kazakhstan – about 2 rubles per kilowatt-hour.

In second place is Ukraine, where electricity is more expensive by 30 cents. Third place is Russia with an average value of 3.4 rubles per kilowatt-hour.

In fourth place is Belarus (about 5 rubles). Further there are mainly countries of the Balkan Peninsula and Eastern Europe. Their low rates are largely determined by the low-income population.

The high cost of electricity for the population in the ruble equivalent was recorded in Denmark – 22.6 ruble per kilowatt-hour. The top five most expensive, Germany, Belgium, Ireland and Spain. The primary factor in determining high rates in developed European countries is the significant share of taxes in the cost of electricity.

One of the reasons for such taxation, in turn, performs to support the development of "green" energy. These countries are actively developing renewable energy and seek to abandon the use of nuclear power plants.

In addition, the high level of prices in developed countries is high-income population – regulating organizations can afford to keep rates at a high level without fear of social upheaval.

Speaking about the dynamics of prices, it should be noted that when compared to last year in most European countries the rise in electricity prices. The price increase occurred in 26 of the 40 countries participating in the rating.

The largest increase in electricity tariffs for the population noted in the Netherlands, Turkey, Lithuania, Czech Republic and Romania. In these countries the rise in prices has exceeded 10%.

Prices fell in 12 States. Most significantly in Denmark, Greece and Norway (5%).

In Russia, the growth rate was 1.6%, not above inflation.

In 2020 is expected to further decrease in electricity prices. In the first quarter due to warm weather, the large volatility and high water availability prices on European exchanges often went into the negative zone, and in Scandinavia they rarely exceed 10 euros for 1 thousand kilowatt-hours.

In Russia tariffs for the population should rise from 1 July. Thus in the current situation of the pandemic, to predict the wage growth rate is quite problematic. It is possible that the availability of electricity for the population will be reduced.