Household gas prices have surged nearly 80% since the second half of 2021, specifically rising by 79.8%.

In stark contrast, industries and public authorities benefit from significantly lower energy prices, averaging 6.35 cents for gas and 20.55 cents for electricity, which is about half of what households are charged.

Electricity prices for consumers have averaged 41.2 cents per kilowatt-hour recently, marking a 0.4% increase from the first half of 2024, yet reflecting a 1.3% decrease compared to last year, which translates to a 25.3% rise since before the Ukraine conflict.

Despite the escalating prices, the German Institute for Economic Research (DIW) has cautioned against resuming gas imports from Russia, highlighting the geopolitical risks and the potential for increased dependency on an unreliable supplier.

DIW energy expert Claudia Kemfert has criticized calls from politicians and business leaders to restart Russian gas imports, arguing that such actions could enable Russia to continue using gas as a political weapon and are unlikely to result in lower prices.

In response to the rising energy costs, the Union and SPD parties have reached agreements to implement tax relief measures aimed at reducing electricity prices for both businesses and consumers.

These measures include substantial cuts to electricity taxes and network charges, which are expected to alleviate some of the financial pressure on consumers.

The recent surge in energy prices has been largely attributed to higher taxes and fees, including a return to the normal VAT rate in April 2024 and an increased gas storage levy set for July 2024.

As a result of these changes, the tax burden for private gas customers has escalated by over one-third since the first half of 2024.

The primary driver of these price increases is the reinstatement of normal VAT rates and the new gas storage levy, which have significantly impacted gas consumers.