European Electricity Market and EU Members'Energy Policies

Veselý, Aleš

The main focus of this thesis is to find out what factors have the biggest influence on the price of electricity for household consumers in the European Union in the context of creating the internal electricity market in the EU. By means of the cluster analysis six EU Member States have been selected according to the following criteria: electricity consumption, electricity production, and the price of electricity. As a result of that Belgium, the Czech Republic, Estonia, Hungary, Malta and Sweden have been selected. Consequently, the regression analysis has been carried out to find out what factors influence the electricity prices in every country individually. The independent variables are mainly various sources of electricity production. It was found out those renewable resources most influent the electricity price for households in Belgium, Estonia, Hungary, and Sweden. Nevertheless, in the context of Europe 2020 strategy and the formation of the European energy market, one of the European Commission's objectives is to increase the share of renewable sources in the production of electricity in the EU Member States. Therefore, it will bring about higher prices of electricity, which goes against the Commission's effort to decrease the price of electricity for households through the liberalisation of electricity and the creation of the internal electricity market.

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