Household energy costs 12 percent higher in Germany one year after start of Russia's war
Clean Energy Wire
Energy costs for private households in Germany is around twelve percent above pre-war levels, as wholesale prices for gas and electricity fall rapidly, comparison portal Verivox said. One year after the Russian invasion of Ukraine, which lead to skyrocketing energy prices in Germany and other European countries, costs have fallen by 21 percent since their peak in October 2022, according to analyses by Verivox. At their highest, energy costs rose by 35 percent since the start of the war. “Wholesale prices for gas and electricity are falling rapidly right now,” energy expert at Verivox Thorsten Storck said. “On the one hand, this is due to lower demand from Asia, and on the other the fear in the market that there could be major bottlenecks in the supply of fuel has given way,” he continued.
In the past twelve months, the annual cost for the averge consumption of 20,000 kilowatt hours (kWh) of gas rose by 19 percent to 3,372 euros, according to the analysis, with electricity also increasing in price by 16 percent to 1,802 euros for 4,000 kWh consumption over the year. Since their peak in October, gas prices have fallen by 35 percent and electricity by 16 percent, Verivox said. Heating oil, petrol and diesel experienced smaller price increases, with oil heating becoming five percent more expensive, diesel six percent and the price of petrol overall remaining the same (plus 0.2%) within the past twelve months.
In September 2022, the German government approved of a 200 billion euro relief package to help businesses and citizens pay for skyrocketing energy prices. However, lower-than expected energy prices mean that Germany is likely to spend much less of its federal budget for gas and power price subsidies than anticipated.