Overview of February electricity bills in regulated markets
February brought higher electricity costs for typical customers on regulated tariffs, driven by a noticeable rise in wholesale prices and a dip in renewable energy share. In markets similar to the regulated framework, bills for a standard household with modest contracted capacity and average monthly consumption edged upward as wholesale costs climbed. The month showed the market’s lowest price in about two years, a shift precipitated by the evolving energy mix and changing demand patterns.
Using a common bill calculator pattern, the typical household with about 4.4 kilowatts of contracted power and 250 kilowatt-hours of monthly consumption, spread across peak, flat, and off-peak periods, saw a February bill rise to a level around 65 euros. This figure marked a roughly 33% increase from January’s average, which stood near 49 euros and had represented the lowest point in almost two years since early 2021. The February rise was helped by strong renewable generation earlier in the year and a corresponding drop in natural gas demand.
Despite the February uptick, overall February revenue remained about 31% lower than the same month in the previous year, which was impacted by broader geopolitical events and higher energy prices at that time. In that comparison, February’s price averages were noticeably below the peaks recorded during the early days of the energy crisis, illustrating a general downward trend from recent highs.
Almost half of the March 2022 peak
The electricity bill trajectory has continued a downtrend that began in the autumn, after a historic peak earlier in the year. In March 2022, the market experienced a record spike tied to broader geopolitical shocks. February’s bill was about 47% lower than that March high and roughly 29% cheaper than the annual average of the 2022 war year, underscoring how price dynamics swung with shifts in supply, demand, and policy responses.
Beyond wholesale price movements, subsequent government actions—such as VAT reductions—also played a role in easing consumer bills. Taxes have fluctuated in the post-pandemic period, with reductions aimed at providing relief to households across various market conditions.
Wholesale market and renewable energy dynamics
The tempering or acceleration of electricity costs for households in regulated markets hinges largely on wholesale market trends. February saw wholesale prices that averaged higher than the preceding month, with the national average around 132 euros per megawatt-hour, a significant rise from January when prices were near 70 euros. The sharp monthly increase reflected changes in the energy mix and market demand, even as renewable generation remained a substantial contributor to overall supply.
While renewable output exceeded historical norms in February, it did not match the prior month’s levels, as more gas-fired generation entered the mix. Combined-cycle plants typically push wholesale prices higher, and their greater participation helped shape February’s price environment.
In generation terms, wind energy accounted for about a third of electricity production in January, with a noticeable shift in February. Combined-cycle plants increased their share from roughly 9.7% in January to about 18.9% in February, while wind rose from 32.2% to 21.3% in the same periods. Overall, renewables contributed a substantial share of capacity, yet the energy mix evolved through the month, influencing the wholesale price path and, by extension, consumer bills.
These shifts illustrate how the interaction of renewable output, fossil fuel generation, and market rules shapes what households pay. In a broader North American context, similar patterns appear: higher wholesale prices tied to supply constraints and demand, tempered by improvements in renewable penetration and policy measures designed to stabilize retail costs for consumers.