Energy Indicators for Sustainable Development: Guidelines and Methodologies International Atomic Energy Agency United Nations Department of Economic and Social Affairs International Energy Agency Eurostat European Environment Agency



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METHODOLOGICAL DESCRIPTION 
(a) Underlying Definitions and Concepts: This indicator reflects the actual price 
paid by final consumers for various energy services. Prices should include all regular 
charges linked to the supply of energy to the customer. For example, for electricity 
and gas, the data should include not only the price per kilowatt-hour (kWh) or cubic 
metre, but also any standing charges and meter rental charges. Initial charges for 


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connection to the electricity or gas network should not be included. For other 
products, any delivery charge should be included. Energy prices can also be adjusted 
(e.g. through taxes) to incorporate external environmental and social costs that energy 
producers and consumers impose on others without paying the consequences. 
Examples of external costs include the environmental and health impacts of air, waste 
and water pollution, and climate change. Reflecting the cost of these impacts in the 
price of energy can help to promote more efficient energy supply and use. 
Different prices are often charged to different types of consumer. Therefore, price data 
should be collected both for the main fuels and for different types of consumer — for 
example, households or industry. 
An underlying principle of tracking price data over time is that the product for which the 
price is tracked remains the same throughout the period. This is clear in the case of 
gasoline, where the data to be collected is always the price at the pump of 1 litre or 
gallon of gasoline. However, for other products, such as electricity or gas, it is less 
straightforward, as the price per kWh paid will vary depending on the amount delivered. 
Therefore, it is necessary to define one or more standard consumers, representative of 
consumers in a given country, whose consumption pattern does not vary from one year 
to another, in order to track changes in price paid. 

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