EU Electricity Prices Stabilize — Luxembourg Stands Out with Deep Subsidies

BRUSSELS – The latest Eurostat data reveals that EU household electricity prices remained largely stable in the second half of 2024. Notably, Luxembourg distinguished itself through exceptionally generous consumer support measures.

Modest Price Dip Amid Tax Shifts

Average household electricity prices—including all taxes and levies—slightly declined to €0.2872 per kWh, down from €0.2889 in the first half of the year. The decrease follows the peak recorded in 2023, signaling a return toward long-term norms.

Tax Proportion Edges Up

Tax and levy components of electricity bills increased modestly to 25.1%, up from 24.3%, mainly due to the gradual reduction of pandemic-era subsidies.

Luxembourg Trumpets Negative Tax Burden

Luxembourg recorded a negative tax share of –49.2%, meaning households effectively paid significantly less than the standing price would suggest thanks to substantial subsidies. This level of support was among the most generous across the EU.

Wide National Variations Persist

• Highest Prices: Germany (≈€0.3943 per kWh), Denmark, and Ireland.
• Lowest Prices: Hungary (€0.1032), Bulgaria, and Malta.
• Largest Increases (Year-on-Year): Portugal (+14.2%), Finland (+13.6%), and France (+12.9%).
• Biggest Decreases: Latvia (–17.8%), the Netherlands (–14.3%), and Belgium (–12.3%).

EU household electricity prices have largely levelled off in the latter half of 2024 as post-crisis volatility fades. Against this backdrop, Luxembourg’s robust subsidy policy delivers clear consumer relief—highlighting how national approaches can make a stark difference in cost of living across the bloc.

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