October 10, 2024, 10:43 am | Read time: 3 minutes
The energy costs incurred by households vary from state to state. This is particularly evident in an east-west comparison, as a recent analysis shows.
Households in eastern Germany are particularly hard hit by high energy costs. This is shown by a recent analysis by the comparison portal Verivox, which compares the costs of heat, electricity, and fuel in individual federal states. One state in the east is particularly hard hit. Which one is it? And where are the energy costs lowest when comparing the federal states?
Energy is significantly more expensive in eastern Germany
Energy costs are a disproportionately heavy burden on households in eastern Germany. According to the Verivox calculation, heating, electricity, and fuel expenditure is around 22% higher there than in western Germany.
In August 2024, the annual energy costs for an average household in Germany will be around 4297 euros. In western Germany, the average cost is 4280 euros, while in eastern Germany it is 4380 euros – a difference of 100 euros.
Higher levies in the East, despite lower incomes
Not only are energy costs higher in the East, but incomes are also lower in these federal states, further increasing the relative burden. Adjusted for purchasing power, annual energy costs in the West amount to 4139 euros and 5042 euros in the East. This corresponds to a difference of 22 percent (903 euros).
Note: “Purchasing power-adjusted” means that the respective purchasing power between different regions, countries, or time periods is also taken into account for financial values such as income or expenditure. This enables realistic comparisons to be made.
Thuringia particularly heavily burdened
Thuringia faces a particularly heavy burden: here, the purchasing power-adjusted energy costs are 23 percent above the national average. The burden is also quite high in Bremen and Saxony (plus 20 percent in each case), followed by Saxony-Anhalt (plus 19 percent) and Mecklenburg-Western Pomerania (plus 18 percent).
Energy costs lowest in Bavaria
In terms of purchasing power, Bavaria boasts the lowest energy costs. They are ten percent below the national average. In Baden-Württemberg and Hesse, costs are also comparatively low (eight and five percent below the national average, respectively).
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The reasons for the differences in energy costs
“In the east, weaker purchasing power meets above-average energy costs,” explains Thorsten Storck, energy expert at Verivox, in a press release. While the average disposable household income in western Germany is currently 58,333 euros per year, it is only 48,977 euros in eastern Germany. This means that the average purchasing power in the East is around 16 percent lower.
The elevated energy prices in eastern Germany are a significant factor in these calculations. A household with an annual electricity consumption of 3500 kilowatt hours pays an average of 1242 euros per year in the West but 1276 euros (three percent more) in the East. The costs for 12,000 kilowatt hours of heating currently amount to 1320 euros in the West. This is compared to 1387 euros in the East (five percent more). At least the cost of fuel is the same in both regions at an average of 1717 euros per year.
“The differences in energy prices between East and West can be partly explained by the higher grid fees,” adds Storck. In eastern Germany, these grid fees are approximately three percent higher for electricity and about ten percent higher for gas.