Highest Electricity Prices Found in Hamburg, Berlin, and Saarland According to Verivox
In Germany, the cost of electricity for households varies significantly across the country, according to Verivox. Apart from Bremen and Saxony-Anhalt, electricity is also cheap in Saxony.
The average household price for electricity in Bremen, the cheapest state, is 1247 euros per year, while in Hamburg, Berlin, and Saarland, it is the highest, at 1607, 1487, and 1468 euros per year, respectively. This equates to a difference of 360 euros between the most expensive and cheapest states, representing a difference of around 29 percent.
Several key factors contribute to these price differences. Network charges, which cover the use and maintenance of power lines, provision, and reading of meters, are set by network operators and are regionally different. They are a significant factor in the overall price of electricity in Germany and are the main cause of price differences across German states.
Grid infrastructure and transmission costs also play a role. Hamburg, Berlin, and Saarland are located in different grid zones with varying transmission and distribution fees. Larger metropolitan areas like Berlin and Hamburg often have higher grid fees due to more complex infrastructure and higher maintenance costs. Additionally, regional grid operators may set different fees, impacting consumer prices locally.
The supplier market and contract conditions also affect pricing. Regional differences in the number and competitiveness of electricity providers impact pricing, with consumers in Bremen or Saxony-Anhalt potentially having better access to less expensive contract options or more competitive markets, lowering their prices relative to Hamburg and Berlin.
Taxes, levies, and surcharges are another factor. Germany’s electricity prices include taxes and renewable energy surcharges, which can vary regionally. Urban areas sometimes impose higher levies or face different tax structures, contributing to cost differences.
Despite significant renewable energy production, Germany still relies heavily on fossil fuels like natural gas and coal, exposing prices to global fuel price volatility. Regions closer to import infrastructure or with better renewable generation can experience somewhat lower prices, whereas urban and industrial regions like Hamburg and Berlin may have higher demand and costs.
To meet renewable energy targets, Germany is investing heavily in grid upgrades and expansion, which are partly financed through consumer charges. The burden of these costs may be different in various federal states depending on grid operator investments and integration of renewables, affecting final prices.
Households in expensive basic supply can save several hundred euros by switching electricity providers. Tariff types also have large price differences across Germany. Verivox has set the price difference between local basic supply and the cheapest nationwide new customer tariff with a price guarantee, which is a nationwide trend, not limited to specific states.
In conclusion, price differences among these German regions arise from a mix of grid costs, supplier markets, regional tax and surcharge variations, and differing impacts of Germany's energy transition and reliance on fossil fuel imports, making Hamburg, Berlin, and Saarland generally more expensive than Bremen and Saxony-Anhalt for electricity. Switching electricity providers can result in significant savings for households.
- The energy policy and industry in densely populated urban and industrial areas, like Hamburg and Berlin, tend to have higher costs due to complex infrastructure, maintenance expenses, and greater reliance on fossil fuels, as compared to regions like Bremen and Saxony-Anhalt.
- The cost of electricity financing in various German states can fluctuate considerably based on factors such as network charges, taxes, and surcharges, grid infrastructure expense, supplier market competitiveness, and regional investments in renewable energy grid upgrades and expansion.
