The study by the European electricity industry association stated the cost of taxes and levies imposed by governments across the continent have risen by 31 per cent between 2008 and 2012, “wiping out any benefits derived from functioning wholesale markets”.
It added that electricity network costs have also increased by an average of 10 per cent, although energy and supply costs have fallen by 4 per cent over the same period.
For domestic customers, the costs of taxes and levies on bills increased from €51/MWh in 2008 to €67/MWh in 2012.
Network costs went up by €4.5/MWh, while energy and supply costs fell from €81/MWh to €77/MWh.
Eurelectric said that is the increase in taxes and levies is sustained over 2013-14, “taxes and levies in 2015 will cost the average European household consumer more than energy and supply”.
For industrial consumers, taxes and levies more than doubled from €12.8/MWh in 2008 to €26/MWh in 2012.
The sector also saw network costs increase by €3/MWh and an average decrease in energy and supply costs of €7/MWh.
In the UK, the report revealed that the government’s policy support costs levied through energy bills were higher than the taxes collected.
This puts the UK as one of only three European countries (alongside Luxembourg and Spain) to collect more money for its policies via levies rather than general taxation.
Angela Knight, chief executive at Energy UK, said the report “clearly identified” the impact government policy costs were having on electricity bills.
She added: “We believe there needs to be an honest and open debate about energy policy including what makes up the typical bill so that customers know what they pay for and why.”