EU Publishes Enerdata Prices, Costs and Subsidies Study
The European Commission recently published a report summarizing the main conclusions of a study conducted by Enerdata and partners Trinomics and Cambridge Econometrics.The study focuses on prices, costs and subsidies for energy in Europe, by evaluating the role of competition in the formation of prices – both wholesale and retail – and analysing the impact of energy bills on household budgets, as well as on the competitiveness of European industries (by industrial sectors) in the global market. Enerdata coordinated a network of experts in the EU’s 28 member states who were tasked with identifying and quantifying energy subsidies.
Our work showed that energy-related subsidies have increased 12%, from 150 billion euros in 2008 to 168 billion in 2016. This growth in public financing for the energy, transport and agriculture sectors in the EU can be explained by the strong support for renewable energy production in the member states (which totalled 75 billion euros in 2016), in line with European commitments.
Even more surprising – and contrary to the European goal of eliminating fossil fuel subsidies – support for hydrocarbons increased slightly to 55 billion euros in 2016, of which 28 billion went to petroleum products. In total, energy consumption and production subsidies were almost 90% of the 2016 total. Subsidies for research and development, and energy efficiency were just slightly more than 10% of the total disbursed in 2016.