The written statement made by the Secretary of State for Energy and Climate Change, Mr Davey on
“Energy prices and costs in Europe” indicates that increases in network costs, taxes, and levies have contributed to rises in EU energy prices. However, the report also identifies that for 22 of the 27 member states surveyed, support for renewable electricity generation accounts for less than 10% of the household electricity price. It also finds a relatively small impact of the EU ETS carbon price on electricity retail prices either for industry or households.
The International Energy Agency report, “World Energy Outlook 2013”, concludes that the recent widening of the gap between EU and US energy prices is mainly as a result of the sharp drop in wholesale gas prices in the United States due to soaring shale gas production, an increase in oil indexed gas prices in other regions, and higher spot prices for liquefied natural gas.