German Electricity Rates Climb To ‘New Record Highs’, Jolting Consumers

More pain for consumers. Electricity prices in Germany climb to a new high, reaching 30.85 cents (euro) per kilowatt-hour. Experts warn transition to green energies may lead to shortages, higher prices.

German online national daily Die Welt here reports on how electricity prices in the country have reached “a new high” and that natural gas prices are high as well.

The German national news daily writes: “Electricity has never been as expensive for private households in Germany as it is this year.”

“Prices have risen to a new high,” Die Welt reports, citing the latest data from German Federal Network Agency.

For the first time, electricity prices for consumers reached 30 cents (euro) per kilowatt-hour, making German electric prices among the highest in the world.

Citing data from the Federal Network Agency, the average price soared to 30.85 cents (euro) per kilowatt-hour, which works out to be an increase of almost 3.3 percent compared to just a year earlier.

Last year the average price for one kilowatt-hour was 29.88 cents.

According to Die Welt: “The Federal Network Agency evaluates the data of well over 1000 electricity suppliers.”

Why is electricity so expensive in Germany?

The Federal Network Agency puts the blame on the electricity wholesalers who, according to Die Welt, “pass on increases to the electricity exchange.”

And an end in the rising price spiral remains elusive, experts warn.

“Wholesale prices for electricity could continue to rise,” Die Welt reports. Large power producers such as RWE warn that future plant closures due to the transition to green energies and the phasing out of the country’s nuclear power plants will “lead to a shortage.”

Die Welt ends its article: “The largest block on the electricity bill, however, are taxes, levies, and allocations, which account for more than half of the total price.”

One major price driver is the mandatory, exorbitantly high green energy feed-in tariffs that grid operators are forced to pay.

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