Gas Prices for Consumers Surge 80% Since Ukraine Conflict

The cost of energy for consumers in Germany has seen significant increases since the onset of the Ukraine conflict. Recent data indicates that, on average, households paid 12.28 cents per kilowatt-hour for natural gas in the second half of 2024. This marks a 3.5% rise compared to the first half of 2024 and a 7.6% increase from the same period in 2023.

When compared to the second half of 2021, prior to the Russian invasion of Ukraine, gas prices have soared by nearly 80% (79.8%). This dramatic rise highlights the ongoing energy crisis triggered by the geopolitical situation.

In contrast, the increase in electricity prices has been less severe. The average cost for electricity in the same period was 41.2 cents per kilowatt-hour, reflecting a modest rise of 0.4% from the first half of 2024, and a slight decrease of 1.3% from a year earlier. When looking back to before the invasion, electricity prices have jumped by approximately 25.3%.

Several factors have contributed to the rising energy costs, including increased taxation and fees. Notably, the return to the standard VAT rate in April 2024 and the rise in the gas storage levy in July have pushed prices upward. The tax burden on gas customers has seen a significant increase, growing by over one-third compared to the first half of 2024.

For private electricity consumers, costs decreased slightly by 2.4% in the second half of 2024 compared to the first half. However, higher network charges have led to an overall increase in the total price for electricity.

In a positive development, negotiations between the Union and SPD parties have resulted in agreements aimed at reducing electricity costs for both businesses and residential consumers. This includes plans to significantly lower electricity taxes and network fees.

Businesses and public institutions have fared better in terms of energy costs than private households. In the second half of 2024, they paid an average of 6.35 cents per kilowatt-hour for natural gas, excluding VAT and other taxes. For electricity, the average cost was 20.55 cents per kilowatt-hour, about half the price charged to private consumers.