In the latter half of 2024, energy prices for private households continued to see a modest increase, according to the Federal Statistical Office (Destatis). The average gas price reached 12.28 cents per kilowatt-hour, reflecting a 3.5% rise from the first half of the year and a 7.6% increase compared to the second half of 2023. This marks nearly an 80% surge compared to the pre-Ukraine conflict prices seen in the second half of 2021. Electricity prices have also escalated significantly over the long term. Households paid an average of 41.2 cents per kilowatt-hour in the latter half of 2024, which is 0.4% more than in the first half of the same year and 1.3% less than the previous year. Compared to prices before the Russian invasion of Ukraine, this represents an increase of around 25%. The primary driver behind the latest price hikes appears to be increased taxation, as indicated by the statistics office. The return to the standard VAT rate starting in April 2024, along with a raised gas storage levy set for July, contributed to this upward trend. Consequently, the tax burden on private gas customers rose by over one-third relative to the first half of 2024. While private households experienced a 2.4% decrease in energy and distribution costs for electricity compared to the first half of 2024, higher network charges resulted in a slight increase in overall prices. In contrast, businesses and governmental entities are paying significantly lower energy prices. According to the statistics, the average price for gas among these groups stood at 6.35 cents per kilowatt-hour, while the average price for electricity was 20.55 cents, excluding VAT. These figures represent approximately half of the costs incurred by private consumers. Amid these developments, the Union and the SPD have reached an agreement during their coalition discussions to implement relief measures. This initiative aims to reduce electricity taxes and network charges for both businesses and households, with the goal of enhancing competitiveness and providing financial relief to consumers. Updates on the ongoing coalition negotiations can be followed in our live blog.