Global household electricity prices 2022, by select country

Denmark and Germany had some of the highest household electricity prices worldwide, as of June 2022. At the time, Danish households were charged around 0.53 U.S. dollars per kilowatt-hour, while in Germany the price stood at 0.52 U.S. dollars per kilowatt-hour. By comparison, in neighboring Poland and in the United States, residents paid three times less.

What is behind electricity prices?

Electricity prices vary widely across the world and sometimes even within a country itself, depending on factors like infrastructure, geography, and politically determined taxes and levies. For example, in Germany and Italy, taxes make up a significant portion of residential end-user electricity prices.

Reliance on fossil fuel imports

Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, Russia, and Saudi Arabia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour. In contrast, countries heavily reliant on fossil fuel imports for electricity generation are more vulnerable to market price fluctuations. For instance, Italy and Germany were the top importers of natural gas in Europe in 2021, while natural gas made up for a relevant share of the power mix of these two countries.