This paper was compiled in collaboration with Eurelectric member companies from several European Member States. It aims to provide explanations and guidance to interested stakeholders on the essentials of retail markets, their interaction with wholesale markets, and their overall place within the EU internal electricity market. The paper addresses the following topics:
- factors determining the price of electricity;
- components of retail prices and consumer bills (energy supply; network; taxes/levies);
- key actors and their responsibility and role in electricity markets, with a closer look at energy suppliers;
- the range of different electricity price contracts;
- benefits of a sustainable, low carbon energy system for consumers;
- how consumers can protect themselves from volatile energy prices;
- measures Member States can take to lower electricity bills;
- measures to reduce the indirect impact of gas spot market prices on electricity retail prices and electricity bills while keeping intact the electricity market fundamentals.