The price households pay for power and gas across 15 of western Europe's capital cities varies by about 300%, according to a new energy price index
seen Monday.

     The monthly Household Electricity Price Index for Europe, to be launched May 19 by Austrian energy regulator E-Control and Finland's VassaETT Global Energy Think Tank, shows Copenhagen topped the domestic power league in April
with the most expensive rates, while Stockholm topped the gas chart.

     At 30.88 euro cents/kWh ($0.511/kWh), Copenhagen power customers are paying 270% more than power customers in Athens. At 13.71 euro cents/kWh, gas
customers in Stockholm are paying 322% more than those in London. All prices include tax.

     Customers in Berlin pay the second highest power tariff, at 21.29 euro cent/kWh, followed by Amsterdam at 20.17 euro cent/kWh. Helsinki, Paris, Stockholm and London, meanwhile, are the cheapest capitals after Athens, with customers paying between 11.62-14.05 euro cent/kWh.

     At 13.71 euro cent/kWh, Stockholm's gas customers pay nearly 5 euro cent/kWh more than the next most expensive capital, Copenhagen. Then come Amsterdam, Rome, Berlin and Vienna, with a spread of 6.68-7.48 euro cent/kWh.  The cheapest gas rates are paid in London, Paris, Lisbon and Brussels
(4.26-5.49 euro cent/kWh).

     "We set out to get a measure of what household customers are actually paying right now--not six months or a year late as with Eurostat. We had to make sure the rates were comparable across the index," said VassaETT's Philip Lewis. 
     "To arrive at our prices we take three tariffs for each city for power and for gas. We take the incumbent standard price and, if there is one, the incumbent's 'typical offer' or competitive price. Then we take the leading competitor's typical competitive price," he added.

     These three tariff groups represent the vast majority of customers in the capitals, averaging well over 80% and ranging from an estimated 60% (London) up to over 99%. Prices exclude direct debit and dual fuel discounts, as well as cash-back and one-to-one price offers/price matching, where they exist,
Lewis said.

     The three tariffs are then weighted and combined to arrive at an average price. "Within that total price, we can show the price each city pays for just
the electricity component, or for distribution, or for taxes," Lewis said.  "The Danish price is absolutely huge, for instance, because more than half of that is tax. The ranking changes somewhat when you take tax out, with Denmark dropping to seventh place."

     Lewis pointed out that the low London gas rate had much to do with a weak pound versus the euro, and that in 2008 London gas would have been much higher up the league. "Stockholm gas is also a little bit unusual in the sense that there is only one supplier [Stockholm Gas, owned by Fortum]. We checked the
price because when we first saw it we thought it was a mistake."

     The research indicates that while household electricity and gas prices fell between January and February, they are set to rise again over the coming months. "In most markets, competitive price movements are a prelude to incumbent prices. Competitive prices are much more flexible, allowing you
to predict about three months ahead where incumbent prices are going," Lewis said.

     The index focuses on capitals because "we wanted to compare like-with-like, and it is impossible to do this across a whole country, as there are variations between regions," Lewis said. "With the capital, you are generally talking about the most competitive market in each country, so in
that respect they are comparative." Data is collected directly from utilities and authorities in the respective markets. The HEPI index will be published in the third week of each month.