Moldova’s place in the ranking of European countries in terms of electricity availability

Moldova ranks last among European countries in terms of electricity that its residents can buy on their average salary. This is evidenced by the data of the new European rating in terms of affordability of electricity for the population, compiled by the experts of RIA Rating. As noted by experts, the residents of Moldova have the opportunity to buy only 2,105.8 kWh of electricity per month on average wages, or more than 14.4 times less than the people of leading Iceland (30,31 thousand kWh). Romania, the Czech Republic, Latvia and Lithuania are also among the countries with expensive electricity in relation to wages. Residents of these countries can buy no more than 5 thousand kWh. At the same time, Iceland, the Netherlands and Liechtenstein are leaders in the ranking of European countries in these terms. In particular, people in Iceland can buy more than 30,000 kWh for their average monthly salary. Electricity tariffs here are relatively low, and salaries are among the highest in Europe, as experts explain. The second place goes to the Netherlands, with the average monthly salary of 25.7 thousand kWh. Also, Liechtenstein, Luxembourg and Norway are in top 5. People of these countries are able to buy more than 17 thousand kWh per month. Russia is placed seven in the ranking. The Russians can afford about 13.5 thousand kWh for their average monthly salary. Its closest neighbors in the ranking are Kazakhstan and Finland, with rates of 16.9 thousand and 12.8 thousand kWh, respectively. As noted by experts, a severe energy crisis erupted in Europe in 2022. The high level of gas prices caused an extremely tense situation on the electricity market. The price in the German sector of the European Energy Exchange (EEX) averaged 235.3 euros per megawatt-hour in 2022, which was 2.4 times higher than in 2021. On some days, the price was close to 700 euros per megawatt hour. According to the study, prices rose the most in August and November. Because of the rise in gas and electricity prices many industrial enterprises in Europe were forced to suspend operations. Some energy companies also suffered serious financial losses as they were forced to buy gas at excessively high prices. The retail market showed a significant increase in prices for the population. At the same time, it should be taken into account that the affordability of electricity is determined not only by its cost, but also by the income of people, experts say. According to analyst estimates, the situation on the European energy market in 2023 will be less tense and prices will decrease compared to last year, but they will remain higher than the average annual level. The experts suggest electricity to become more affordable for residents of some states.