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Transparency of gas and electricity prices

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Transparency of gas and electricity prices

The transparency of energy prices ensures that competition is not distorted and thus contributes to the smooth functioning of the internal market. In this regard, this Directive lays down procedures relating to the circulation of information and the prices of gas and electricity.

ACT

Directive 2008/92/EC of the European Parliament and of the Council of 22 October 2008 concerning a Community procedure to improve the transparency of electricity and gas prices charged to industrial end-users (recast) (Text with EEA relevance).

SUMMARY

This Directive aims at establishing a European procedure to ensure transparency of gas and electricity prices charged to end-users.

The procedure is necessary, insofar as this information enables consumers to choose between different energy providers and also between energy sources.

Information provided

The Member States shall ensure that the undertakings that provide industrial end-users with gas and electricity communicate the following information to Eurostat:

  • the prices and terms of sale of gas and electricity to industrial end-users;
  • the price systems in use;
  • the breakdown of consumers and the corresponding volumes by category of consumption to ensure the representativeness of these categories at national level.

Procedures framing gas and electricity prices

Prices reported must be the prices paid by industrial end-users buying natural gas distributed through mains, and buying electricity, for their own use. They are to be expressed in national currency per gigajoule (for gas) and per kilowatt-hour (kWh) (for electricity).

These prices must include all charges payable, such as network charges and energy used, rebates or premiums. Initial connection charges are not to be included.

Three levels of price are to be provided:

  • prices excluding taxes and levies;
  • prices excluding VAT and other recoverable taxes;
  • prices including all taxes, levies and VAT.

These prices are collected twice per year (January and July) whereas the method of calculation and a description of the taxes levied on sales of gas and electricity to end-users are to be transmitted once per year (in January).

Information on the procedures framing gas and electricity prices is to be communicated by an independent statistical body.

This Directive repeals Directive 90/377/EEC.

Reference

Act

Entry into force

Deadline for transposition in the Member States

Official Journal

Directive 2008/92/EC

27.11.2008

-

OJ L 298 of 7.11.2008

Last updated: 02.03.2011

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