Soaring electricity prices rank our nation among the globe's priciest electricity markets.
In a recent analysis by comparison portal Verivox, our country was found to have one of the most expensive electricity prices in the world. The average price of electricity in our country is 38 cents per kilowatt hour, placing it fifth among the most expensive electricity nations worldwide.
The planned tax reduction of 1.95 cents per kilowatt hour for everyone has been postponed, meaning that electricity in our country will remain expensive for the time being. As a result, an average household will not receive annual net relief of almost 50 euros due to the postponement of the tax cut.
Comparatively, the top countries with the highest electricity prices are mostly in Europe. Ireland, Italy, Germany, Belgium, and the UK, where prices range between 0.37 to 0.45 USD per kWh, dominate the highest electricity price rankings. The highest U.S. state (Hawaii) matches this global high tier, with a price of about 42.44 cents per kWh.
Interestingly, India, while having higher electricity tariff rates compared to the cost of production, ranks lower than Europe’s top countries. Indian consumers pay an average of about 13 cents per kWh, which is high relative to many developing countries but lower than Europe’s top countries.
Despite the high electricity prices, the government had promised relief to consumers. However, the planned tax reduction has not yet provided significant relief to consumers. The postponement of the tax cut is likely to prolong the high electricity prices in our country.
Internationally, electricity prices have risen on average by 29 percent compared to the situation in 2021. Our country's electricity prices have also risen by an additional 19 percent since 2021.
The planned electricity tax reduction to the European minimum would cost the state billions. So far, only the manufacturing industry has benefited from tax relief, costing the state 3.7 billion euros this year. Federal Chancellor Friedrich Merz (CDU) emphasizes that the government has to consider the federal budget.
Electricity in our country is almost exclusively produced with diesel and gas power plants. The high reliance on fossil fuels contributes to the high electricity prices in our country.
As the government continues to grapple with the high electricity prices, consumers are left hoping for significant relief in the near future. The postponement of the tax cut has left many questioning the government's commitment to providing relief to consumers.
In light of the postponed electricity tax reduction, other industries may be encouraged to seek similar tax relief, as the manufacturing industry has already benefited and saved the state 3.7 billion euros this year. Additionally, with a significant portion of the energy industry in our country relying on diesel and gas power plants, a shift towards renewable sources could potentially offer relief from the high electricity prices.
