Energy Costs in Germany—Developments, Drivers and International Comparison

This article summarises results a study undertaken by Frontier Economics and the EWI for the German Ministry of Economics. The study makes progress in creating transparency of energy supply prices and cost (for electricity, gas and oil products) in Germany in an international context. In Germany most retail prices have increased significantly since 1998 and are at the highest level for most customer groups and products in international comparison. Main drivers that differentiate prices internationally are, duties and taxes, network tariffs, political interference with retail prices and the degree of end customer competition. Based on this analysis the authors recommend a review of the consistency of policy measures (especially taxes, duties, levies and subsidies) with the energy policy goals of price competitiveness, security of supply and environmental sustainability. Furthermore, the authors suggest further refining network regulation, enhancing competition in the retail sector and improving transparency of price information.