Abstract

Analysis of the electricity market in the region of five EU countries (Austria, Croatia, Hungary, Italy and Slovenia) with 86 million inhabitants reveals that in the period after the financial crisis the growth of electricity consumption by 1%  leads to 0.9% higher electricity prices for industry and 0.6% growth of electricity prices for households. The situation on the German electricity market has had a statistically significant influence. An increase in taxes in the German price of electricity (they are collected to raise funds intended for power generation from renewable sources) for 1% leads to 0.25% reduction in electricity prices for industry and 0.12% reduction in electricity prices for households in the analyzed group of EU member states.

From 2010 to 2015, Germany unleashed subsidization of electricity generation from renewable sources from 12 to 24 billion € a year (0.8% of GDP in 2015). This had an impact on increasing supply of electricity and intermittent information about the actual cost of its production. Between 2011 and 2015 the electricity price on the German Stock Exchange (Phelix) fell by 38%.
 
Keywords: the market structure pricing, production of electricity, energy and the economy

JEL: D40, L94, Q43