The indicator Energy prices shows the final prices of fuels reflecting the basic prices of fuels, including all taxes. The prices for electricity are reflected in EUR per kilowatt hour (EUR/kWh), for natural gas in EUR per gigajoul (EUR/GJ), for liquid fuels in EUR per litre of fuel (EUR/l).

The prices of electricity and natural gas show the final energy prices for typical consumer groups of industrial and household consumers, whereby the prices for industrial consumers do not include the value-added tax (VAT).

The absolute level of energy prices and their trends have a strong influence on total energy consumption and changes in the demand for various fuels. The growth of energy prices represents an initiative for the reduction of energy consumption with final users, which would also reduce the impact on the environment. The relative changes of prices of energy products, which are mutually exchangeable, influence the substitution of fuels.

The opening of the market is significant for the provision of competitive energy supply, especially of industrial consumers, for higher efficiency of operations of energy companies, higher transparency of energy supply and energy markets as well as better provision of energy services to consumers. The energy policy does not have an indirect influence on the basic price of energy; namely, the price for the use of networks is also shaped by the Energy Agency of the Republic of Slovenia. The only mechanism, by which the state can directly influence the final price of energy, is the implementation of tax policy, through which the amount of energy taxation is determined.

In general, the prices of energy products have increased in real terms with regard to 1995. The main reason has been the high prices of oil and gas on international markets. The prices of electricity, which were in 2006 in real terms the only ones that were comparable with the level of prices from 1995, became in 2008 in real terms higher than the prices from 1995. For the formation of prices of electricity, especially liberalisation, the opening of markets and a higher level of taxation had a strong impact; in recent years, the lack of supply in the wider European market has also had an effect on prices.

Electricity
After 1992, the prices of electricity in Slovenia increased primarily due to deregulation in the area of prices and the elimination of cross subsidizing. In general, the prices of electricity began to reflect the costs of its production more. In industry, prices significantly decreased in 1999 due to higher competitiveness among energy providers, as a result of the opening of the market. In the period 2000–2005, the prices settled down and there were not any significant changes. In 2006, the prices of electricity began to increase in real terms, primarily as a result of greater demand, lack of offers of electricity and higher prices of oil derivatives in the world market; such a trend continued also in 2008.
The trends of electricity prices for households were in the period 1995–2000 similar to those in industry, whereby the main reason for the increase was higher taxation (see figure 5). After 2000, there were no significant changes in prices for households. The main reason was the state control of prices. On 1 July 2007, the market was completely opened; however, no significant price changes were noticed in 2008.

Natural gas
Until 1999, moderate growth in the use of natural gas was typical for Slovenia; in the period 1999–2001, this growth became more intensive. The reasons for growth before 2000 and afterwards are different. In the period 1995–2000, the main reason for the increase in the price of natural gas was higher taxation (increase in the share of taxes in the final price of natural gas). After 2000, inconsistent trends of prices for household and industrial consumers were recorded; in recent years, a strong increasing trend was recorded. The prices of natural gas for industrial consumers were in 2008, with regard to 2000, more than 60 percent higher in real terms; for households, prices were more than 80 percent higher. The main reason for the increase in final prices was the higher basic price of natural gas – as a result of higher import prices and general conditions in international markets of natural gas (see Figure 5).

Oil derivatives and heating oil
In Slovenia, oil derivatives are the most expensive energy product, mainly due to a relatively high share of taxes in their final prices. Slovenia is also one of the rare EU countries that entirely regulates the price of oil derivatives. It has a prescribed methodology for the pricing of fuels, while the state can also influence the final prices by increasing excise duties. The basic purpose of introducing the control of prices of oil derivatives was the protection of consumers against the oligopolistic formation of basic prices by dealers with fuels and also the possibility of implementing protection measures against the influence of global prices of oil on inflation in Slovenia. Since 1995, the prices of oil derivatives have been increasing in real terms with an average annual growth rate above 4.5 %; however, the main reason for growth in the period before 2000 and afterwards is not the same. In the first period, the growth of prices was primarily a result of higher taxation of oil derivatives (introduction of excise duty and VAT), while the main reason for the growth of retail prices of oil derivatives in recent years is primarily the result of the growth of basic prices of fuels due to higher prices of oil in global markets.

The prices of electricity in Slovenia remain below the level of EU-15 prices for tariff (household) consumers; for industrial consumers, energy prices are higher. According to purchasing power (considering the standard of living in terms of prices), prices in Slovenia in 2008 were 24 % lower than the average price in the EU-15. The prices of electricity for industrial consumers in 2008 were 2.5 % higher than the EU-15 average.

In 2008, the prices of natural gas remained below the level of the EA-15 for industrial and household consumers, whereby the price of natural gas has been, in recent years, approaching the European average. According to purchasing power (considering the standard of living in terms of prices), the price of natural gas for tariff consumers in 2008 was 5 % lower than the EA-15 average.

In the area of oil derivatives, the prices of unleaded gasoline (UMG 95) and diesel fuel (D2) in 2008 were around 18 % (UMG 95) and 11 % (D2) below the average prices in the EU-15. There are two reasons – lower basic prices of fuels and primarily the taxation level of fuels, which remains significantly below the level of the most developed countries.