New research has shown that the cost of electricity in Germany is one of the highest in the world. Since the turn of the millennium, the price of electricity in Germany has more than doubled.

The price of power

A study carried out by Verivox has determined the average cost of electricity in 126 countries. While the analysis ranked developing countries like Rwanda, Sierra Leone and Burkina Faso among the top 10 most expensive countries for electricity prices worldwide, Germany ranked 16th overall. Portugal, ranked 13th, is the only other developed country with higher prices.

Out of the G20 countries, Germany ranks as the most expensive country for electricity prices by a long way. Turkey and Italy follow in second and third, respectively and, when adjusted for purchasing power, electricity prices in these countries are around 10 cents cheaper than in Germany.

Why is electricity so expensive in Germany?

The study found that the annual consumption of a one-person household in Germany costs about 1,2 percent of the average GDP per capita, which is almost double that of Sweden or the Netherlands. This rate is only higher in poorer EU countries, like Romania or Bulgaria.

Essentially, this means that German consumers have to spend a larger proportion of their disposable income on electricity than consumers from most other EU countries.

Electricity prices in Germany have more than doubled over the past 20 years, with a kilowatt-hour now costing an average of 32,10 cents. Over the past two decades, the price has increased due to a number of taxes and fees, such as the EEG levy and network fees. These now make up about two-thirds of the price of electricity in Germany.