Electricity pricing (sometimes referred to as electricity tariff or the price of electricity) varies widely from country to country, and may vary signicantly from locality to locality within a particular country. There are many reasons that account for these differences in price. The price of power generation depends largely on the type and market price of the fuel used, government subsidies, government and industry regulation, and even local weather patterns.
Electricity prices vary all over the world, even within a single region or power-district of a single country. In standard regulated monopoly markets, they typically vary for residential, business, and industrial customers, and for any single customer class, might vary by time-of-day or by the capacity or nature of the supply circuit (e.g., 5 kW, 12 kW, 18 kW, 24 kW are typical in some of the large developed countries); for industrial customers, single-phase vs. 3-phase, etc. If a specific market allows real-time dynamic pricing, a more recent option in only a few markets to date, prices can vary by a factor of ten or so between times of low and high system-wide demand.
The actual electricity rate (unit cost per unit electricity) that a customer pays can often be distorted by the effect of customer charges, particularly for small consumers (e.g. residential).[1]
As of June 2009, Denmark has the most expensive electricity tariff in Europe with tax included, followed by Italy. Ireland has the highest pre-tax tariff. France has the lowest pre-tax price for electricity in Europe, at 4.75 Eurocents/kWh, and second-lowest price with tax of European countries. A comparative list of June 2009 prices for Europe may be found in the European Household Electricity Price Index.[2]
The following is a rough comparison of electricity tariffs of industrialised countries and territories around the world.[3]
Finland, Sweden and Norway are claimed to have common electricity market. In October 2011 (week 40) the price of electricity was in Finland 33.6 €/MWh, Sweden 12.8 €/MWh, and Norway 3.4-12.8 €/MWh.[4]
Country/Territory | US cents/1kWh | As of | Sources |
Argentina | 05.74 | 2006 | [5][3] |
Australia | 25 | 2012 | [6] |
Belgium | 29.06 | November 1, 2011 | EEP[5] |
Bhutan | 01.88 to 04.40 | March 23, 2012 | BPC[6] |
Brazil | 34.18 | January 1, 2011 | ANEEL |
Canada | 10.78 | January 1, 2011 | PEI |
China | 16.0 (tariff for renewables - not true grid price) | January 1, 2011 | [7] |
Chile | 23.11 | January 1, 2011 | Chilectra[8] |
Croatia | 17.55 | July 1, 2008 | HEP |
Denmark | 40.38 | November 1, 2011 | EEP[5] |
Finland | 20.65 | November 1, 2011 | EEP[5] |
France | 19.39 | November 1, 2011 | EEP[5] |
Germany | 36.48 | November 1, 2011 | EEP |
Guyana | 26.80 | April 1, 2012 | GPL |
Hungary | 23.44 | November 1, 2011 | EEP[5] |
Hong Kong(HK Is.) | 12.04 | January 1, 2012 | HEC[10] |
Iceland | 9 to 10 | June 1, 2012 | OR[11] |
Ireland | 28.36 | November 1, 2011 | EEP[5] |
Italy | 28.39 | November 1, 2011 | EEP[5] |
Israel | 12.34 | January 1, 2012 | IEC[12] |
Jamaica | 07.35 up to 100 kWh, 16.80 beyond | June 1, 2011 | JPSCo[13] |
Latvia | 15.40 | November 1, 2011 | EEP[5] |
Malaysia | 07.42 | December 1, 2007 | ST[14] |
Moldova | 11.11 | April 1, 2011 | RUF[citation needed] |
Netherlands | 28.89 | November 1, 2011 | EEP[5] |
New Zealand | 19.15 | April 19, 2012 | |
Pakistan | 02.06 up to 50 kWh, for a maximum of 14.62 beyond 700 kWh | May 6, 2011 | LESCOFESCO |
Perú | 10.44 | 2007 | PTL[15] |
Philippines | 30.46 | March 1, 2010 | [7] |
Portugal | 25.25 | November 1, 2011 | EEP[5] |
Russia | 09.58 | January 1, 2012 | Mosenergosbyt |
Singapore | 22.83 | April 6, 2012 | [16] |
Spain | 27.06 | January 1, 2012 | Iberdrola |
Solomon Islands | 00.84 to 00.90 | 2012 | SIEACBSI |
South Africa | 05.37 | July 1, 2008 | Eskom |
Sweden | 27.10 | November 1, 2011 | EEP |
Taiwan | 07 up to 17 | October 1, 2008 | [8] |
Thailand | 04.46 up to 09.79 | March 5, 2011 | BOI |
Tonga | 57.95 | June 1, 2011 | [9] |
Turkey | 13.1 | July 1, 2011 | TEDAS |
Iran | 02.00 to 19.00 | July 1, 2011 | |
UK | 21.99 | November 1, 2011 | EEP[5] |
Ukraine | 03.05 (first 150kWh), 03.95 | 2011 | 10[17] |
Uruguay | 14.47 to 22.89 | February 18, 2011 | UTE |
USA | 11.20 | 2011 | EIA[18] |
Uzbekistan | 04.95 | 2011 | Stroyka.uz[17] |
Vietnam | 06.20 to 10.01 | 2011 | Reuters |
The U.S. Energy Information Administration (EIA) also publishes an incomplete list of international energy prices, while the International Energy Agency (IEA) provides a thorough, quarterly review for purchase.
Electricity price forecasting is simply the process of using mathematical models to predict what electricity prices will be in the future.
This section is empty. You can help by adding to it.
Everything from salmon migration to forest fires can affect current and future power prices. [citation needed] However, when forecasting those prices there are some fundamental drivers that are the most likely to be considered. [citation needed]
Studies show that generally demand for electricity is driven largely by temperature. Heating demand in the winter and cooling demand (air conditioners) in the summer are what primarily drive the seasonal peaks around the year in most regions. Heating degree days and cooling degree days help measure energy consumption by referencing the outdoor temperature above and below 65 degrees Fahrenheit, a commonly accepted baseline.[19]
Snowpack, streamflows, seasonality, salmon, etc all affect the amount of water that can flow through a dam at any given time. Forecasting these variables allows one to predict the available potential energy for a dam for a given period.[20] Some regions such as the Pacific Northwest get a large percentage of their generation from hydro-electric dams.
Whether planned or unplanned, outages affect the total amount of power that is available to the grid.[citation needed]
The Fuel used to generate electricity at a Power Plant is the primary cost incurred by Electrical generation companies. Particularly, Coal, as a fuel for baseload plants and more important, to a degree, Natural Gas for peaking plants effect power prices.[21]
During times of economic hardship, many factories will cut back their production due to a reduction of consumer demand and therefore reduce production-related electrical demand.[22]