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Energy prices


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Household electricity prices

The coalition agreement does not specify a quantitative target for the development of household electricity prices. However, the affordability of energy, and of electricity in particular, has been an important energy policy goal of all federal German governments in recent years. Here we show how the average electricity price for households has developed since the liberalization of the German electricity market. We draw on the BDEW electricity price analysis. Average prices for a household with an annual consumption of 3500 kWh are shown, with fixed price components also allocated to consumption. We first show the data in current prices as provided by BDEW. In addition, we present the prices adjusted for inflation (price base second half of 2022, deflated with consumer price index).

Electricity prices for households are significantly higher than wholesale market prices because they include various other price components. These include costs for distribution and meters, regulated network charges for the operation of transmission and distribution networks, and various taxes, levies, and surcharges. In the years 2013 to 2021, taxes, levies and surcharges accounted for more than half of the household electricity price. In the wake of the energy price crisis, however, their share has fallen to just under one-third, as procurement costs have risen sharply due to high wholesale prices. The EEG levy, which has been charged since 2000 to finance the expansion of renewable energies, was abolished on July 1, 2022. However, this relief was more than offset by the increase in procurement costs in 2022.