assessment1
The external costs that arise from the environmental impact of electricity production are significant in most EU countries and reflect the dominance of fossil fuels in the generation mix. In 2005 the average external costs of electricity production in the EU were between 1.8-5.9 Eurocent/kWh. Despite progress, these external costs are still not adequately reflected in energy prices. Consumers, producers and decision makers do not therefore get the accurate price signals that are necessary to reach decisions about how best to use resources.

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