Electricity retail price in the U.S. 1998-2021, by sector

In 2021, the retail price of electricity for residential customers in the United States averaged 13.72 U.S. cents per kilowatt-hour. Households are charged more than the commercial and industrial sector, in general due to higher distribution costs. Between 2020 and 2021, households in the U.S. saw their electricity bill increase by more than 65 percent. Meanwhile, commercial clients saw a 51-percent increase in the same period.

The U.S. electricity market

The U.S. electricity market is led by several types of electricity providers, such as cooperatives, municipal systems, and shareholder-owned electric utilities. In 2021, cooperatives were the most common type of ownership in the U.S., with more than 600 providers. That year, the U.S. electric utility industry revenue amounted to 424 billion U.S. dollars.

Electricity prices around the world

Electricity prices vary widely from country to country, depending on energy sources used as well as government and industry regulations. In 2021, Germany and Denmark had some of the highest household electricity prices worldwide, mainly due to high electricity taxes. Meanwhile, U.S. households paid some of the lowest prices. However, leading oil and gas-producing regions such as the Middle East registered the cheapest rates overall.