Energy bills are a significant and vital part of household budgets. But the household prices for gas or electricity vary immensely across Europe.
Generally people in Germany can expect their energy costs to be significantly lower than their rent – often a bit less than they’d pay for groceries over a given period of time as well.
In a televised political debate on Sunday, leader of the far-right Alternative for Germany (AfD) party, Alice Weidel, leaned into voters’ dissatisfaction with rising costs by claiming that Germany has the “highest electricity prices in the world”. As The Local reported, that claim was not true, but it is true that Germans currently pay higher electricity prices than most Europeans.
So how does the cost of energy in Germany compare to other European countries?
Energy prices in European capital cities ranked
The Household Energy Price Index for Europe (HEPI), which is created by Energie-Control Austria, Hungary’s MEKH and VaasaETT, tracks energy prices in 33 European capital cities.
The monthly HEPI report for January 2025 shows that Berlin had the highest electricity prices of Europe’s capitals at the beginning of the year.
The report looks specifically as energy cost data from Europe's capital cities. But these prices also give an idea about how energy costs in Germany compares to that of other European countries.
Berlin residents paid around 40.4 euro cents per kilowatt hour (kWh) in January. The next highest electricity costs were seen in Brussels (38.5 cents per kWh) and Copenhagen (37.5 cents per kWh).
The European capital with the lowest electricity price was Budapest, where residents pay just 9.1 cents per kWh. The average electricity cost in capital cities across EU member countries was 25.5 cents per kWh.
Looking at residential gas prices, the cost to Berlin residents was closer to the European average.
Stockholm had the highest gas prices by far, with residents paying 33.3 euro cents per kWh.
In Berlin, residents pay 11.9 cents per kWh – just above the EU average of 11.1 cents per kWh.
Kyiv had the lowest gas prices in January, at just 1.8 cents per kWh.
What makes electricity more expensive?
Experts suggest the difference in electricity prices is explained by local factors including different electricity generation mixes as well as taxes, tariffs and grid fees.Â
In Germany, grid fees and taxes in particular push electricity prices up.
According to data in the HEPI report, after the costs for distribution and taxes including VAT are taken out, only 39 percent of Berlin’s total electricity cost is for the energy itself.
That’s a particularly high proportion for taxes and grid fees: Across the EU energy makes up 50 percent of the cost on average.
READ ALSO: Where electricity prices are expected to drop in Germany in 2025
What affects gas prices?
Gas prices are affected by similar factors, including regional procurement and pricing strategies and tariffs, as well as domestic storage levels and weather conditions.
Stockholm’s exceptionally high prices, for instance, are explained by Sweden’s comparatively small and isolated market.
As opposed to for electricity, German residents benefit from comparatively low distribution costs on gas.
In terms of cost breakdown, 53 percent of the cost for gas was for the energy itself in Germany in January, which was just above the EU average of 52 percent.
Overall, gas prices in EU capitals have decreased compared to the previous two years when prices had shot up following Russia’s invasion of Ukraine, and the reduction of Russian gas imports that followed.
READ ALSO: Why fuel prices in Germany are on course to rise significantly
Relative costs
Interestingly when purchasing power is factored in, Prague takes Berlin’s place at the top of the list of capital cities with the highest electricity costs, according to a report by Euronews.
Berlin, however, retains the second place position.
When purchasing power is factored into the gas price, Berlin drops to the bottom third of the chart with comparable costs to Riga or Bern.
While Berlin still wears its reputation as being “poor but sexy” with pride, its relatively high purchasing power (compared to the European average) ensures that its residents aren’t yet breaking the bank to pay their energy bills.
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