Industrial electricity prices in a European comparison

Uniform Industrial electricity prices There is no such thing in Germany or in Europe. In Germany and the other European countries, industrial electricity prices are extremely high. individual together. If a company does not have its own power plant on its premises, electricity must always be bought in and this is always cheaper for large or energy-intensive companies than for private households. A distinction is therefore generally made between private electricity prices and commercial or industrial electricity prices.

How are industrial electricity prices made up?

Industrial electricity prices are determined by many different factors. The Wholesale prices on the spot markets are usually the largest component when concluding an electricity supply contract with the supply companies. In addition, there are Grid charges, taxes and levies. The individual composition of these costs varies depending on the company, as some benefit from specific relief, such as subsidies, financial assistance, tax, levy or fee concessions. In general, it can be said that European companies with high energy consumption are more likely to benefit from relief than companies with lower energy consumption. In addition, they currently still receive free CO₂ certificates on European emissions trading and often have special contracts with utilities that offer extremely favorable conditions, but are generally not publicly known.

Only rough data on average industrial electricity prices

All information on the level of average industrial electricity prices in the individual countries is therefore only very rough. The data of the International Energy Agency (IEA) or Eurostat are not 100 % valid. In Germany alone, electricity prices for companies vary widely. A cleaning chain, a medium-sized automotive business or a large bakery will have different tariffs than, for example, a steelworks or a chemical company. For an international comparison, there are further influencing factors. The variety of cost components varies considerably and makes a direct comparison difficult. In addition Currency fluctuations affect comparability, as electricity prices are also quoted in local currency.

The different energy mixes and generation costs in different countries are further challenges. Countries with a higher share of renewable energy can have lower generation costs than those that rely more heavily on fossil fuels. Regulatory differences in the energy sector and various economic structures also contribute to the difficulties of comparison. The specific Regulations for large consumers and individual contractual terms between companies and energy suppliers are often not publicly known and make it difficult to analyze them accurately.

There are also No uniform standards for data collection and reporting of industrial electricity prices, which can lead to statistical inaccuracies. Overall, a precise international comparison of industrial electricity prices therefore requires a thorough consideration of local conditions and a comprehensive analysis of the many factors that influence pricing. The new price structure introduced in November 2023 by the compromise Electricity tax reduction The end of the debate on a uniform industrial electricity price was very difficult because there were basically no reliable figures. All sides argued without a valid comparison.

European comparison of figures

The statistical surveys on average industrial electricity prices in Europe by Eurostat and the IEA therefore provide at least a rough overview for a European comparison. The Fraunhofer Institute for Systems and Innovation Research ISI also comes to the same conclusion in a Studyin which different company sizes were calculated using case studies in various countries, came to similar conclusions. In Europe, gross electricity prices in France, Portugal, Finland and Sweden for companies below average.

The industrial electricity price is also composed very differently. For example, procurement and distribution costs are highest in the Netherlands, although the overall gross price here is still lower than in Germany. For medium-sized companies, the levies in Germany are higher than in Denmark, for example. Overall, privileged large corporations pay roughly the same level of levies and electricity taxes across Europe.

In a global comparison, the European industrial electricity prices however Relatively high and are well above the prices in North America and the Far East. At around 26 cents/kWh at the end of 2022, the German gross industrial electricity price was in the European midfield. The relief package and the planned reduction in electricity tax for 2024 will reduce this figure by a further 1.5 cents/kWh.