Development of Electricity Prices in Germany and Austria

Electricity prices in Austria have risen sharply in recent years, affecting households of all sizes. Whether you're living alone or with a big family, the increasing costs are likely noticeable in your monthly bills.

Discover the details behind these changes and what they mean for your energy bill.

In the past decade, electricity prices in Austria have seen quite a lot of ups and downs. Currently, for households, it’s at the rising stage. As a consumer, now you pay between 20 and 40% more than you did just two years ago. For businesses, however, the situation has been getting slightly better.

Your annual electricity consumption has an impact on your electricity bill; it’s a fact. But to what extent? The average electricity price in Austria is currently around €0.35 per kWh. Smaller households with low consumption pay approximately €0.51/kWh, most consumers pay €0.40/kWh, and larger households or energy-intensive users pay €0.33/kWh.

Here’s what the energy prices for households were like in the first half of the year 2024:

• For smaller households consuming no more than 1,000 kWh/year, the electricity price is around €0.51 per kWh. This is often the case if you live in an apartment, pay close attention to your energy consumption or generate your own renewable energy.

• For the majority of consumers (with a consumption of between 1,000 and 2,500 kWh/year), a slightly lower tariff of €0.40/kWh applies. This includes, for example, small families or people who mostly use energy-efficient appliances.

• Medium-sized households (with a consumption of between 2,500 and 5,000 kWh/year) typically fall into an intermediate price range, which could be around €0.36/kWh. These might be families with moderate energy use or homes with a mix of efficient and standard appliances.

• Larger households or energy-intensive users (with a consumption of 5,000 to 15,000 kWh/year) receive the lowest tariff of €0.33/kWh due to economies of scale. These households may have several residents or larger homes with higher energy needs.

For businesses, the average price during the same period was approximately €0.22 per kWh, with rates ranging from €0.35 per kWh for consumers using up to 20 MWh annually to €0.16 per kWh for those consuming over 150,000 MWh annually.

Source: e-control.at

Keep in mind that prices differ dramatically depending on the region. 

From the second half of 2022 to the first half of 2024, electricity prices for households in Austria have been going up. This includes all consumer groups, from small households to those with high energy needs. 

• Smaller households (with a consumption of up to 1,000 kWh/year): The price has risen from €0.43 to €0.51 per kWh. That's a price increase that might make you think twice about switching on that extra light in the hallway or falling asleep with a Netflix series on.

• Medium-sized households (with a consumption of between 1,000 and 2,500 kWh/year): The price rose from €0.31 to €0.40 per kWh. This means that families with children will have higher bills to pay this year, on top of all other expenses. 

• Households with medium-high consumption (with a consumption of 2,500 to 5,000 kWh/year): The price has risen from €0.27 to €0.36 per kWh. This increase may feel significant for those using a moderate amount of energy, leading to higher annual costs.

• Larger households (with a consumption of 5,000 to 15,000 kWh/year): The prices rose from €0.24 to €0.33 per kWh. For those living in larger homes or having a lot of appliances requiring significant amounts of energy, this could mean a significant drop in their budget.

In contrast, businesses are benefiting from a slight reduction in electricity prices, which have decreased by 8%. For them, electricity prices changed from €0.24 to €0.22 per kWh. 

The final electricity costs per kWh are calculated from the energy price, network charges, taxes, and levies. This year, energy prices themselves have been the main driver of the cost increase. Grid costs and taxes, on the other hand, have remained relatively stable in 2024. 

• Energy price (around 60%): The cost of the electricity itself. They often make up the largest part of the price. However, the cost per kWh can vary based on how much energy you use, the prevailing market price for electricity, and whether you actively switch providers. Regularly changing your electricity provider to take advantage of new customer bonuses can help reduce the energy price significantly, leading to noticeable savings on your total electricity costs.

• Grid charges (around 22%): As with the delivery charges for a product, grid charges cover the cost of transporting the electricity from the power stations to your home or business.

• Taxes and levies (around 18%): These are the additional costs added on by the government. They are used, for instance, to finance renewable energy projects.

Electricity prices in Austria have remained high for a while now. The main reasons why electricity prices are going up are the need to recover past procurement costs, increased CO₂ pricing, higher network charges, and the ongoing gas supply issues from Russia. Let's have a closer look at each factor.

Electricity providers are still dealing with the extremely high costs they paid for electricity last year. They need to recover these costs, so obviously they keep the prices high.

The price companies pay for emitting CO₂ has risen from €32.50 per tonne to €45 per tonne in 2024. This makes electricity generation from fossil fuels more expensive, which affects overall prices.

In 2024, network charges have jumped up compared to the previous year. This, unfortunately, added up to the cost of electricity.

The ongoing stoppage of gas supply from Russia continues to affect gas prices. As you probably know, gas-fired power plants are crucial for electricity generation. No wonder the cost of producing electricity went up.

Electricity in Austria is likely to become significantly more expensive from 2025 due to rising grid fees, increased taxes, and the expiration of the government price cap.

• Grid fees will rise sharply in 2025 as the amount of energy drawn from the grid decreases due to the greater use of renewable energy. Meanwhile, the costs of maintaining and expanding the grids will increase, spreading higher costs over fewer units of energy consumed.

• In 2022, taxes on electricity were reduced to a minimum due to the energy crisis. This regulation will expire at the end of 2024, and extending it would require a change in the law.

• The electricity price brake, introduced as a subsidy, will also end at the close of 2024.

Electricity prices in Germany are decreasing. In 2024, households are seeing some good news: the average electricity price has dropped by 11%, compared to last year. As a result, the current average is 40.92 cents/kWh for people with a typical annual consumption of 3,500 kWh. 
So, is the trend of rising costs starting to reverse? We invite you to take a closer look.

For regular households, the average electricity price is 40.92 cents/kWh, while small to medium-sized industrial companies pay an average of 16.99 cents/kWh. Both rates are lower compared to 2023, offering some relief to consumers and businesses alike.

Over the past years, electricity prices changed notably from year to year. In 2022, electricity in Germany cost an average of 37.91 cents per kWh. By 2023, it had risen significantly to 45.73 cents per kWh. It got better this year, though. The average price is now 40.92 cents/kWh. 
The change was even greater for small and medium-sized enterprises. In 2022, they paid 43.20 cents per kWh, but in 2023 the price fell to 24.46 cents. Now, in 2024, it is only 16.99 cents per kWh. For businesses that rely heavily on energy, this reduction is a wonderful opportunity to cut costs, boost efficiency, and redirect funds into growth or innovation. Say, installing a fleet of chargers for charging company cars. 

The total electricity cost = generation costs + delivery costs + taxes and levies + network charges. As you can see, the price per kWh isn’t just about the energy itself — it’s a cocktail made of several components.

• The cost of producing and distributing electricity has dropped by 6.27 cents per kWh. At the moment, it is 17.57 cents per kWh, which is good news for consumers. With this reduction, they can save on energy and spend more on things that matter, like presents for their loved ones.

• Taxes and levies for household customers have also seen a 5% drop, now at 11.82 cents per kWh. While this is just a part of the total price, every little bit helps lighten the financial load.

• Network charges, which cover things like maintaining and modernising the power grid, have gone up by 2 cents per kWh, now at 11.53 cents per kWh. These costs ensure the electricity gets to your home safely and reliably.

Electricity prices are a reflection of a balance between supply and demand, the type of energy used, and the cost of building and running power plants. In other words, the cost you pay per kWh is shaped by a combination of market factors and production methods.

Electricity prices are determined on national and international platforms like EEX or EPEX Spot. The math here is simple: when demand is low and supply is high, prices are low. But when demand increases (e.g., during hot summers) or supply decreases (e.g., less wind power), prices rise. 
However, this principle does not always apply. Many energy companies such as Verbund purchase energy for a longer period in advance. As a result, their purchase price — and therefore the consumer price — does not always reflect the short-term fluctuations of the energy market. 

The way electricity is generated also plays a role. For instance, renewable energy sources are cheaper to produce because they don’t require fuel or CO2 certificates, unlike traditional power plants that use coal, gas, or oil. 

Electricity prices are set like an auction. Power plants offer electricity starting with the cheapest, and more are added until there’s enough to meet demand. The price of the last, most expensive power plant used sets the price for all electricity, so even cheaper plants get paid that rate.

Although electricity prices in Germany are still among the highest worldwide, the good news is that they’re heading in the right direction. But what’s driving this positive change? We’ve looked into it and are ready to share what we’ve uncovered.

Germany is hitting new highs with renewable energy. In the first half of 2024, 140 terawatt hours of renewable electricity were produced — more than ever before. This made up 65% of all electricity generation, positively reflecting on the electricity bills of those living in Germany.

In early 2024, Germany bought more electricity than it sold, with a net import of 11.3 terawatt hours. Since the electricity prices of wind and hydropower in Scandinavia are rather low, the imports were a more financially beneficial decision than using electricity from German coal and gas-fired power plants. Meanwhile, Germany sent electricity to countries like Austria and Poland, using its well-connected grid to profit when it had surplus power.

The German government introduced the so-called price caps and subsidies to protect consumers and industries from sky-high energy costs. These measures acted like a safety net, preventing prices from spiralling out of control.

Electricity prices in Germany will not differ significantly in 2025. Smart devices, expanded storage, and optimised use of self-generated electricity will help consumers benefit from the dynamic electricity market.
Two significant changes affecting the final price per kWh are the following:

• Nationwide levies and taxes are set to rise from 3.62 to 4.70 cents per kilowatt hour in 2025.

• In contrast to levies, network fees vary regionally in Germany due to the decentralised structure of distribution network operators. Most households are expected to see lower fees in the coming year.

All in all, electricity is more affordable than ever, as long as you use it at the right time and take advantage of smart devices.

Whether energy prices are rising or falling, it's important to have control over your energy costs. Key steps include switching providers for the best tariff, monitoring your energy usage, and generating your own solar power.

Different providers often have different rates, special deals, or discounts, and by checking around, you can find options that better suit your needs and cut down on costs. Regularly comparing plans makes sure you're not overpaying for services. 

Install a smart meter to track real-time energy usage. Many apps can connect to your smart meter and give you detailed insights into where and when you're using energy, helping you identify opportunities to reduce consumption. 

If possible, install PV panels to generate your own electricity. This will reduce your reliance on the grid and protect you from fluctuating prices. Adding a battery storage system for your solar energy will provide extra security. While such a solution is still relatively pricey, it has become more and more affordable in recent years.

One of the most effective ways to charge your electric car at a low price is by installing a smart wallbox at home. Charging with your own electricity is always cheaper than using public charging stations, whether it’s regular AC chargers or fast and superfast DC chargers.
We mentioned that the wallbox must be smart for a reason. While cheaper, simple ones are only able to direct power from the grid into your car once you plug in the cable, intelligent ones come with money-saving features. Once you try them, you will never want to use simple charging! 
When shopping for a smart wallbox, here are the features to look for: 

When the day is especially sunny and while all the devices at home are getting enough power from the solar panels, there is still some left, it can be fed into your car battery. You can do that with an Energy Management System such as the go-e Controller and the go-e Charger. The EMS tracks the amount of energy available and gives the charger a signal to initiate charging once there is surplus power.

With dynamic energy tariffs, your electric car becomes a smart money-saver, charging when electricity prices are at their lowest. Using the go-e Charger’s “ECO mode,” your wallbox automatically tracks real-time prices from your energy provider and charges only when costs hit your preferred level. For flexibility, the “Daily trip” mode ensures your car gets the required energy on time while still selecting the cheapest hours to save you money.

Note: From January 1, 2025, all electricity suppliers in Europe must offer dynamic tariffs.

If you live in a hilly area and plan to recharge through “recuperation” while coasting downhill, you don’t need a full charge. So why spend money on that? In the go-e app, you can simply set your desired energy amount, having full control and flexibility for your trip.

What if someone uses your wallbox while you're not home? With RFID management, you can prevent unauthorised access. Simply restrict access to yourself, your family, or others by registering their RFID tags in the go-e app. Only registered users will be able to charge. Plus, the app keeps track of who charged, how much, and when. This means if you share your wallbox with a neighbour, you’ll know exactly how much they owe from your electricity bill.