A new report has revealed that consumers in Germany continue to pay high prices for electricity. In 2020, for the second year in a row, electricity prices in Germany are the highest in Europe.

Electricity prices on the up in Germany

Figures from the Federal Statistical Office show that electricity prices in Germany have risen again in 2020, despite the federal republic taking over from Denmark as the most expensive country for electricity in 2019.

According to the figures, a small household that consumes around 1.200 kilowatt-hours a year would have had to pay 34,30 cents per kilowatt-hour last year, which amounts to an increase of 0,81 cents when compared to 2019. Similarly, a larger household, which uses 3.500 kilowatt-hours annually, paid an average of 30,43 cents per kilowatt-hour last year, when they only paid 29,83 cents in 2019.

While the cost of energy in Germany is only getting higher, the average electricity prices in Europe fell over the last year. In the eurozone, prices dropped by 0,53 cents to an average of 22,47 cents per kilowatt-hour. Across the EU, average prices fell by 0,51 cents to 21,26 cents.

Calls for reform the EEG surcharge

Dietmar Bartsch, chairman for The Left, has called for taxes on electricity to be abolished for private households. “Germany is the “European champion” when it comes to electricity prices," he said. "They are unacceptably high and must fall significantly."

Germany’s electricity prices have more than doubled in the past 20 years, which is largely down to various taxes and charges. These extra costs now account for more than two-thirds of the price of electricity.

The EEG surcharge is one such component. Part of the German Renewable Energy Sources Act, it was introduced in 2000 and has since been modified several times. The charge is levied on electricity consumers in Germany and is used to fund long-term contracts with renewable energy producers. Bartsch has called for reforms to the EEG surcharge.

The federal government has subsidised the surcharge for the years 2021 and 2022 to prevent it from rising significantly. As a result, the surcharge will amount to 6,5 cents per kilowatt-hour in 2021 and six cents in 2022.