Montenegro has ranked among the European countries with the lowest electricity prices for households in the second half of last year, according to new data from Eurostat.
With an average price ranging from €16.49 to €18.16 per 100 kilowatt-hours (kWh), Montenegrin households pay significantly less than the EU average, which stands at €28.49, reports the RTCG portal.
This price gap becomes even more pronounced when purchasing power parity is taken into account, as citizens of many wealthier countries face considerably higher costs for basic energy. For example, households in the Czech Republic pay as much as €41 for the same amount of electricity, while prices in Germany and Cyprus exceed €35.
In addition to electricity, Montenegro also has relatively affordable natural gas prices, although Eurostat does not provide precise data for all non-EU countries. However, the region shows clear differences—while households in Serbia pay around €8.07 for gas at an energy value of 100 kWh, the price in North Macedonia reaches as high as €20.53, the highest recorded price in Europe.
The favorable energy prices in Montenegro are the result of several factors, including a regulated tariff model, domestic hydroelectric production, and limited participation in the liberalized market. However, challenges remain, particularly regarding long-term investments in energy infrastructure and the transition to sustainable energy sources.
The price of natural gas for households, based on purchasing power parity—which considers exchange rates and income differences between countries—was among the lowest in Europe in the second half of last year for Serbia. Serbia is also one of the countries with relatively cheap electricity, with the average price for 100 kWh standing at €18.16 in the second half of last year, according to Eurostat data, reported Bloomberg Adria.
Eurostat published its regular semi-annual comparison of electricity and gas prices for EU member states, along with additional data for some other European countries. Long-term data shows that electricity prices have stabilized in the last two years, while gas prices rose slightly in the second half of last year after a previous decline over three consecutive semesters.
However, both energy prices remain significantly higher than before the inflationary surge caused by the pandemic and the Russian invasion of Ukraine. For example, in the second half of last year, EU households were expected to pay an average of €28.49 for 100 kWh of electricity. The same amount of electricity four years earlier cost €7 less, meaning it rose by a third. Meanwhile, gas prices increased by more than 70%.
Taking into account income differences per capita and including all taxes and fees, electricity was the most expensive in the Czech Republic. Households consuming between 2,500 and 5,000 kWh annually had to pay €41 per 100 kWh. Cyprus and Germany were close in price, with the same amount of electricity costing €35.7 and €35.23, respectively.
The EU average was €28.49, while households in Croatia paid €21.71, among the highest electricity prices in Europe.
In Slovenia, electricity was slightly more expensive at €23.29, while Montenegro and Bosnia and Herzegovina, along with Serbia, were among the countries with relatively cheaper electricity. In these countries, prices ranged between €16.49 and €18.16. Eurostat does not have data for North Macedonia for the second half of last year, but in the first half, the price was similar to that of Croatia—€21.41 for 100 kWh.
Iceland had the cheapest electricity in Europe, at least among the countries for which Eurostat has data. There, 100 kWh cost €12.2 in the second half of last year.
Iceland uses geothermal sources for a quarter of its electricity production.
