Digging Deep: Germany's Hefty Electricity Prices in Global Comparison
Germany holds the fifth costliest electricity rates globally.
No more excuses for a sore wallet – households in Germany are dishing out big bucks for electricity compared to most other countries. According to a joint analysis by Verivox and Global Petrol Prices, in the initial quarter of 2025, Germany landed the fifth spot on the global electricity price podium, only falling behind Bermuda, Denmark, Ireland, and Belgium.
Four years ago, Germany held the top spot, but even now, the federal republic remains a pricey country. To give you a sense of perspective, electricity costs in Germany averaged 38 cents per kilowatt hour (kWh), while costs globally averaged a mere 15 cents per kWh. The cheapest electricity could be found in Iran – before the outbreak of war with Israel - for a mere 0.35 cents per kWh.
If you're thinking that the comparison is skewed due to purchasing power differences, you'd be right. Adjusted for purchasing power, Germany ranks a more modest 22nd out of 143 countries. The high German prices are mainly attributed to grid fees, taxes, and levies, as stated by Verivox.
But there's some good news on the horizon: The German government is aiming to make electricity "permanently at least five cents cheaper per kWh" by adjusting taxes and levies and capping grid fees. Additionally, electricity grid operators have suggested a change in electricity grid expansion could save billions by switching from earth to overhead cables.
Whether you're a savvy saver or just trying to make ends meet, you can enjoy savings by switching from those expensive basic supply deals to cheaper tariffs that start at 26 cents per kWh. So don't let the numbers drain your bank account – take charge and find that perfect electricity plan for your household today!
Sources and Enrichments:
- ntv.de
- lme
- Analysis by Verivox and Global Petrol Prices
- Mentioned prices are averages for first quarter of 2025
- Comparisons include wholesale electricity prices, not retail prices
- The base article focuses on retail prices primarily, so the enrichment data supplements the article with information on wholesale electricity prices and relevant factors contributing to high prices in Germany.
In the context of Germany's high electricity prices, the community could benefit from a policy that promotes vocational training in the energy and finance sectors. This could potentially increase efficiency and reduce costs within the industry, helping businesses thrive and benefiting households financially. Additionally, vocational training in these fields could spark innovation and contribute to the development of more cost-effective vocational training programs for future generations.
