Energy prices and costs in EuropeRefining Forum, 25 April, 2019Tom HowesDG ENERGY1
Wholesale andinternational pricesThe volatility of international fossil fuels prices impacts the EU energy pricesCrude oil (Brent) and European wholesalegasoline, diesel and heating oil pricesSources: Platts, ECBWholesale electricity prices in the EUSources: Platts, European power markets2
Wholesale andinternational pricesInternational gas and electricity pricesWholesale electricity prices for industrySources: Eurostat, CEIC and IEAEuropean, US and Japanese wholesale gas pricesSources: Platts, Thomson-Reuters
Retail pricesDifferent price structures across MS, fuels and consumer groupsHousehold electricity prices in 2017Industrial electricity prices in 2017Household gas prices in 2017Median and large industrial gas prices in 2017Source: Directorate-General for Energy
Retail prices forindustry - TaxationThe importance of taxation in electricity pricesTaxes on industrial electricity over timeTaxes on industrial electricity in 2017Taxes on electricity in 2017:small vs large industrial consumersSource: DG ENER in-house data collectionSource: Directorate-General for Energy
Costsfor the EU's economyThe energy import bill The EU is stillexposed to volatileglobal fossil fuelmarkets, which canimpact on fiscalregimes andmacroeconomicstability.Source: Directorate-General for Energy
Costs for the industry competitivenessEnergy shares in total production value and real unitenergy costs Energy share of purchasesof energy in the EU stablearound 2% of the totalproduction valueSources: EC, Eurostats Relative real unit energy costsgenerally stable in recent yearsSource: DG JRC and DG ECFIN
Costs for the industry –competitivenessDeclining energy shares in production costs(but still significant for energy intensive sectors)Energy share of productioncosts (range)Examples of sectorsAverage European businessComputers and electronics, motor vehicles, other transportequipmentWaste management and accommodation and restaurantsEnergy intensive sectors in manufacturingCement, lime and plaster, Clay building materials, Pulp and paper,Glass, Iron and steel, Basic chemicals, Non-ferrous metals0-3 %1%3-5 %3-20 %Sources: Trinomics (2018), Ecofys (2018)
Costs for the industry –competitivenessKey plant level result from case studies of EIIs DecliningNb: energy efficiencydirective:2020 Commissionassessment of thepotential for energyefficiency in ion andstorage of energy.Sources: CEPS, Ecofys (2018)
Costs for the industry – energyintensityDeclining energy intensities in most of the energy intensive sectorsSources: Trinomics (2018), Ecofys (2018)
Costs for the industry competitivenessInternational price comparisons over timeRetail electricity prices – EU vs G20Sources: Eurostat, CEIC , ERRA, IEARetail gas prices– EU vs G20
Costs for the industry CompetitivenessInternational comparisons on energy costs and intensityEnergy costs and energy intensity in energy intensive sectorsSources: Trinomics (2018)
Energy Subsidies Public spending, energy subsidiesincreasing to drive the energytransition ( 170 bn in 2016). fossil fuels subsidies not declining.Sources: EC, Trinomics (2018) Wide differences in support tofossil fuels exist in the EU.Sources: EC, Trinomics (2018)
Energy TaxationEnergy taxation provides stable and significant government revenues 280billionper yeari.e. close to5% of taxrevenuesSource: Eurostat
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Energy prices and costs in Europe This third energy prices and costs report (following 2014, 2016) assessestrends in prices and costs of fuels in Europe, providing background factsand figures for EU energy policy making It updates data (including on 2014 subsidies estimates), adds more data onpetroleum products, and on energy costs, especially for energy intensiveindustries (drawing on DG GROW studies & analysis). It provides evidence supporting the ongoing energy transition (includingthe LTS), and a timely review of taxation, subsidies, revenues and ( / )imports.
Retail pricesDifferences in price dynamics across MS fuels and consumer groupsHousehold electricity prices 2008- 2017Electricity prices for industry in 2008 - 2017Household gas prices in 2008- 2017Gas prices for industry 2008- 2017
Retail prices for industry price regulationPrice regulation : the case for non-household electricity and gas marketsMark-upsMark-ups
Costsfor householdsenergy poverty: energy as a share of household expenditureExpenditure on energy in lower middle income EU households(Euros and share of total expenditure) Spending on energyaverages 5.5%, up to10% Wide differences acrossMember States
Competitiveness - Costsfor the industryEnergy costs and competitiveness at macroeconomic level The EU's overallcompetitiveness remainsstable compared to maintrading partners The reliability and thequality of service of energyis a competitive advantagefor the EU
Costs for the industry –competitivenessRepresentativeness of samples for the plant level analysis
Costs for the industry –competitivenessX-sectorial comparisons in line with x-band comparisonsSource: CEPS, Ecofys (2018)
Prices, costs and investmentsProjections suggest future prices increasingly cover(investment) costs, reducing need for subsidiesSource: Left graph Platts, METIS(2030); right graph: PRIMES
The energy transition - Pricesvs costs and investmentsLooking forward:Investments in electricity capacitySource: Left graph Platts, METIS(2030); right graph: PRIMES
To discuss! Volatile (international) fossil fuel prices still drive EU prices Decarbonisation, long term strategy Price divergence across MS has declined, but can still be significant internal market International position of the EU stable (generally between Asia and fossil fuelproducer countries) international competitiveness Major tax and levy divergences across MS, fuel and consumer group Competition distortions, weak price signals for energy policy goals Energy costs affect macroeconomy, households, industry Imports, / supports, subsidies & price signals Support for level playing field, appropriate subsidies Energy taxes provide revenues Energy subsidies need reviewing (NECPs) and should decline in the future
Industrial electricity prices in 2017 Household electricity prices in 2017 Household gas prices in 2017 Median and large industrial gas prices in 2017 Retail prices Different price structures across MS, fuels a
electricity prices between 2012 and 2017. 10. Imbalance prices have caused changes in GB electricity prices in 2016 and 2017. Yet there is no evidence of causality running from imbalance prices to electricity prices over longer periods of time (2012-2017). 11. Imbalance costs do not have a substantial impact on the GB electricity price. 12.
Annx. 3.6 Gross value added at basic prices by industry of origin, Gross Domestic product at market prices & Gross National Income at constant (2011-12) prices 32 Annx. 3.7 Net value added at basic prices by industry of origin, Net domestic product at market prices & net national income at current prices 33
Costs of Generating Electrical Energy 1.0 Overview The short-run costs of electrical energy generation can be divided into two broad areas: fixed and variable costs. These costs are illustrated in Fig. 1 below. Fig. 1 Typical values of these costs are given in the following Table 1 . Some notes of interest follow: .
1 Costs of Generating Electrical Energy 1.0 Overview The short-run costs of electrical energy generation can be divided into two broad areas: fixed and variable costs. These costs are illustrated in Fig. 1a below. Fig. 1a Typical values of these costs are given in the following Table 1 . Some notes of interest follow:
on work, power and energy]. (iv)Different types of energy (e.g., chemical energy, Mechanical energy, heat energy, electrical energy, nuclear energy, sound energy, light energy). Mechanical energy: potential energy U mgh (derivation included ) gravitational PE, examples; kinetic energy
comprise of core APC costs of 26.4 billion in 2015-16, mental health costs of 6.9 billion, community costs of 5.4 billion and ambulance costs of 1.7 billion. 15. Figure 2 shows the total costs reported in 2015-16, split by setting10. The largest single proportion of costs is non-elective inpatient care, which accounts for 25.9% of
installation, capital, and retrofit costs, for energy saving technologies are often higher than the upfront costs for less energy-efficient equivalent technologies. Even though many energy-efficient technologies have higher upfront costs than their conventional equivalents, these additional costs can be recouped from the energy savings. The
2. Data Sources 11 2.1 Living Costs and Food Survey 11 2.2 English Housing Survey 12 2.3 Energy prices 14 3. Distributional Effects of Energy Price Increases 16 3.1 Levels of spending on domestic energy 16 3.2 The share of domestic energy costs in total expenditure 23 3.3 Influences on energy spending: methods of payment and heating 27
metal prices, operating costs and capital costs. As is typical with precious metal projects, the Moss project is most sensitive to metal prices, followed by operating costs, and initial capital costs. Table 1 – Project Economics NPV @ 0% NPV @ 5% NPV @ 10% IRR Payback (Yr) Before Tax 172,600 132,569 103,647 73.1% 1.8
2. Life Cycle Costs The life cycle cost analysis of the office and food store examples includes initial construction costs of suspended ceiling vs. open plenum designs, as well as annual operating costs. Operating costs of HVAC and lighting systems (i.e. re-lamping, utilities, energy costs), maintenance costs such as periodic
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CHAPTER 13 Aggregate Supply 7 The sticky-price model High EP leads to High P If firms expect high prices, then firms that must set prices in advance will set them high. Other firms respond by setting high prices. High Y leads to High P When income is high, the demand for goods is high. Firms with flexible prices set high prices.
electricity prices while the importance of renewables goes up To assess the change in the sensitivities of prices to the various . Then, even negative prices may occur which are caused to a large extent by wind infeed . Impact of renewable energies on electricity prices - Page 19 .
asset prices and trading volume 1055 ipants.1 Consequently, transactions costs should also affect market li-quidity and asset prices in equilibrium.2 However, the direction and magnitude of their effects on asset prices, tradin
Estimating Farm Machinery Costs File A3-29 Ag Decision Maker M achinery and equipment are major cost items in farm businesses. Larger ma-chines, new technology, higher prices for parts and new machinery, and higher energy prices have all caused machinery and power costs to rise in r
Historic cost - disadvantages Historic costs may understate asset prices in times of high inflation and overstate asset prices in times of technological change this method may lead to unstable prices (e.g. prices may rise when new, more expensive assets replace existing assets
CIRCUIT COURT CLERK’S MANUAL - CRIMINAL CRIMINAL FEES AND COSTS SCHEDULE PAGE B-1 Office of the Executive Secretary Department of Judicial Services Rev: 8/15 APPENDIX B - CRIMINAL FEES AND COSTS SCHEDULE . I. FEES AND COSTS (A-C) A. Abandoned Vehicle Costs Costs assessed for recovering expenses to remove or store an abandoned vehicle.
20 18 16 14 12 10 8 6 4 2 0 2004/05 2018/19. Total costs include financial costs and human costs. Financial costs cover loss of output, healthcare costs and other payments made. Human costs are the monetary valuation given to pain, grief, suffering and loss of life. To find out the story behind the key figures, visit https:// www.hse.gov.uk .
Source: Deloitte Access Economics. Productivity costs make up 81% of total financial costs, which is followed by deadweight losses (11%), health system costs (6%), and other costs including educational and crime and justice costs (3%) (Chart iii). Employers were est
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