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Households in Eastern Germany Face Disproportionately High Energy Costs

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Heidelberg, August 26, 2024 (FFN News)Households in eastern Germany are burdened with disproportionately high energy costs. After adjusting for differences in purchasing power, their heating, electricity, and gasoline bills are nearly 22% higher than those in the western part of the country. This information comes from a report by the DPA news agency, citing a survey conducted by the consumer portal Verivox.

The highest energy cost burden is in the federal state of Thuringia, where costs are 23% higher than the national average, while the lowest is in Bavaria, where costs are 10% lower. The average German household, consisting of approximately 2.03 people, currently spends around 4,297 euros annually on energy. In western Germany, the cost is slightly lower at 4,280 euros, whereas in the east, it is significantly higher, at around 100 euros more. When adjusted for lower incomes in the east, the disparity becomes much larger. According to Verivox, the energy costs adjusted for purchasing power amount to 4,139 euros per year in the west and 5,042 euros in the east, a difference of about 22%.

Key Data: Energy Costs Comparison

RegionAnnual Energy Cost (EUR)Adjusted for Purchasing Power (EUR)Difference
Germany (National Avg)4,2974,297
Western Germany4,2804,139
Eastern Germany4,3805,042+22%
Thuringia+23% (compared to national avg)
Bavaria-10% (compared to national avg)

Factors Influencing Higher Costs

  • Network Fees: Energy costs in eastern Germany are also driven by higher network fees. The costs for operating, maintaining, and expanding the electricity grid are approximately 3% higher for electricity and 10% higher for gas in eastern Germany compared to the west.
  • Income Disparity: Lower incomes in the east exacerbate the impact of these higher costs, leading to households spending 9% of their purchasing power on energy, compared to 7% in the west.

Keywords: Eastern Germany, energy costs, Thuringia, Bavaria, Verivox, purchasing power, electricity, heating, network fees, income disparity

Source: FFN News, DPA

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