World gas tariffs

(Pic. 82.1 – World market rates for gas)

(Pic. 82.2 – Prices for gasoline and electricity)

Let’s analyze cost situation in the power industry of the countries taking Europe as an example.

Prices for gas stay to be important point in many countries of Europe. The most countries buy gas at Gasprom Company, others – on free market at wholesale prices. Not all the countries which buy gas at high prices issue high final domestic cost as well as not in all the countries with their own natural gas production or with minimum dependence from gas we can see low prices on their domestic market. Very often they are political, social and ecological reasons which dominate in price formation for gas to the citizens.

The most expensive natural gas in Europe is bought by the citizens of Sweden. But the citizens of Sweden who solve ecological issues don’t take offence – proportion of gas in power balance of the country composes only several percent. Almost half of the electrical power in Sweden is received from renewable sources (sun, wind, water). On the second place we can see Denmark which has high proportion of “green” power: approximately 30% is on the “shoulders” of wind power plants; that is why gas as a fuel for the Danes is better pleasure than the necessity.

Russia as a leading worldwide gas producer takes the last place in this selection of the countries according to the rates for gas to the citizens. It is reasonable to note that the wholesale prices for the citizens are much lower than prices for the households. High final cost for gas is formed by the steps of the chain on the way to the citizens of Russia.

The first place among European countries with the most expensive gasoil 95 was "won" by Norway. The winners with the cheapest gasoil are the former countries of the USSR: Russia, Belarus and Ukraine.

The researches demonstrate that Denmark and Germany are obliged to put their hands into the pocket for electric power most of all; the cheapest price is paid by Ukraine, Belarus and Russia.

The reason of such high price for electric power in Denmark is also State doctrine to apply "green" power industry - renewable power sources. Leading European positions in alternative energy implementation are taken by Germany too, this explains the rates.

The cost for electric power is often closely associated with the level of economic development of the country (first of all with GDP volume). The situation with cheap electric power in Ukraine is typical for post-Soviet countries: high income level predetermines high sensibility to rates increase for electricity. That is why the government regulates the cost of the electric power wishing to lend social support.