Electricity prices in Germany ranked amongst highest globally
A new international comparison of energy prices has revealed that Germany has some of the most expensive electricity in the world. German electricity prices ranked as the 15th most expensive out of 133 countries.
Germany: Third-highest electricity prices in the EU
The people of Germany face exorbitant electricity costs compared to other countries around the world. The German comparison company Verivox analysed data from the Global Petrol Prices energy service for 133 countries, and found that the cost of electricity in Germany ranked as the 15th highest. Electricity prices were adjusted for purchasing power and ranked from most expensive to least expensive.
According to the analysis, the price of electricity in Germany, adjusted for purchasing power, is 45-dollar cents (39-euro cents) per kilowatt-hour. This not only puts German electricity costs as the 15th highest of all the countries included, but it also means Germany has the third-highest electricity prices in the EU - only the Czech Republic and Romania were higher. Germany’s electricity prices are also more expensive than those in all the other G20 countries.
The data included in the study refers to the second quarter of 2021, and so does not take into account the surge in prices consumers in Germany are currently facing. This suggests that energy prices in Germany may well be higher right now than the data shows. The prices were calculated as an average of tariffs from selected suppliers and official data.
German electricity prices high due to taxes
Germany’s electricity prices are, by some way, also the highest out of the G20 countries. Italy was the next on the list, but only came in at 33rd place, followed by the UK in 44th place. When adjusted for purchasing power, electricity prices in Italy and the UK are 10 and 12,5 cents cheaper respectively than in Germany. In fact, many other countries with a high standard of living, including Norway, Canada, Sweden, the Netherlands, and Finland, boast energy prices that are at least 50 percent cheaper than Germany
So why are electricity prices in Germany so high? Experts suggest that the significant rise in energy prices over the last 20 years is largely down to an increase in taxes and surcharges. The controversial EEG surcharge, the charge levied on private households to finance Germany’s investment in renewable resources, is a shining example of this.