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Cost of energy in Germany at highest level since 2012

Cost of energy in Germany at highest level since 2012

Cost of energy in Germany at highest level since 2012

The cost of fuel and home utilities, like heating and electricity, have risen significantly in Germany in the past year. Costs have now risen to their highest level since 2012, and experts predict that this trend will continue in the future.

Electricity, heating and fuel costs rise significantly in Germany

An analysis by tariff comparison provider Verivox has revealed that energy prices have risen considerably over the past year. Accordingly, the cost of energy for a three-person household in Germany most recently reached 4.063 euros per year, which is around 19 percent higher than in August 2020, when energy costs sat at around 3.411 euros. "The costs for heating, electricity and fuel are currently at their highest level since 2012," said Verivox expert Thorsten Storck.

One of the reasons for such a large increase is tax. In the second half of 2020, VAT was temporarily reduced to help businesses and consumers recover financially from the coronavirus crisis. VAT has since returned to its normal level and, with oil prices increasing last year, as well as a CO2 tax being levied on energy sources from the beginning of this year, prices have shot up.

Energy and fuel prices driving up the cost of living

Wholesale energy prices have risen significantly in Germany, with oil prices increasing by as much as 53 percent. Gas prices haven’t risen as steeply but still recorded an increase of 15 percent. Verivox calculated the weighted price increase of both energy sources (according to their use) to be 26 percent in one year. "The price rally in fossil fuels is fuelling inflation and driving household costs of living up," Storck said. "In view of the high international raw material prices and the rising CO2 price, this trend will continue in the medium term."

Electricity prices for private households have also increased by around 6 percent over the past year; a household that consumes 4.000 kilowatt-hours per year now pays 1.216 euros, whereas a year ago the price was only 1.150 euros. Verivox also reported that the cost of refuelling from a petrol pump has increased by around 26 percent.

William Nehra

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William Nehra

William studied a masters in Classics at the University of Amsterdam. He is a big fan of Ancient History and football, particularly his beloved Watford FC.

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