Electricity prices in Germany have risen by almost 40 percent over the past 12 months - to an all-time high - according to the comparison portal Verivox.

Electricity prices reached new highs five times in 2021

The price of electricity for private households in Germany has shot up at an unprecedented rate over the past year, with comparison portal Verivox calculating the price rise within the space of 12 months at nearly 40 percent. Between August 2021 and January 2022, the price record high was broken five times. 

According to the calculation, a family of three with an annual consumption of around 4.000 kilowatt hours paid an average of 1.171 euros in January last year; in January 2022 this figure rose to 1.625 euros - an increase of 455 euros, or 38,8 percent. 

“Electricity prices in Germany are at an all-time high,” said Verivox energy expert Thorsten Storck. “Consumers in this country have never had to spend so much on electricity.” Adding that this put an immense pressure on households across Germany, Storck said, “Previously, an increase of this magnitude spanned 12 years.” 

Across Germany, prices rose differently in different federal states, with Mecklenburg-Vorpommern experiencing the sharpest price increase. In the northeastern state, costs rose by 48,7 percent within a year, corresponding to 565 euros for a family of three. 

German utility companies blame rising wholesale prices

Verivox explained that utility companies in Germany have mostly justified the price increases by pointing to rising wholesale prices, which have “really exploded since mid-2021.” At the same time, costs for suppliers on the EEX electricity exchange have also risen sharply. 

“Suppliers who buy electricity on the market at short notice have been particularly put under pressure in recent months to pass on the rising procurement costs to their customers,” Storck said. He said that the trend would continue in the coming months, despite the government’s pledge to slash the EEG surcharge.