Germany Leads G20 with Highest Electricity Prices Driven by Taxes

Germany currently has the highest electricity prices among G20 nations, with consumers paying an average of 35.6 cents per kilowatt-hour (kWh), more than double the G20 average of approximately 16.3 cents per kWh. This finding comes from an analysis conducted by the comparison portal Verivox, which highlights that taxes, levies, and grid fees account for over 60% of the electricity price in Germany. This substantial tax burden makes electricity in Germany more expensive than in Italy, which follows at 34.5 cents per kWh, and the UK at 32.4 cents per kWh.

In contrast, major economies such as France and the USA report significantly lower electricity prices of 23.3 and 18.3 cents per kWh, respectively. Verivox’s energy expert, Thorsten Storck, notes that the actual cost of electricity production represents only about one-third of the total household electricity price in Germany, underscoring the impact of taxes and fees on the price consumers pay.

Economic associations and political figures are calling for urgent reforms. There are intensified demands for the German government to reduce electricity taxes to alleviate the financial burden on both households and businesses. Green Party politician Michael Kellner has emphasized the need for this tax reduction to be implemented before Christmas, referencing government promises to that effect.

The current high tax and levy structure is a decisive factor in Germany’s electricity pricing, differentiating it sharply from other G20 nations. Despite the critical burden on consumers and enterprises, the cost of production remains a minor component of the overall expense, which many see as a target for policy adjustments to improve affordability.