Retail residential electricity prices in the United States have mostly risen over the last decades. In 2023, prices registered a year-over-year growth of 6.3 percent, the highest growth registered since the beginning of the century. Residential prices are projected to continue to grow by two percent in 2024. Drivers of electricity price growth The price of electricity is partially dependent on the various energy sources used for generation, such as coal, gas, oil, renewable energy, or nuclear. In the U.S., electricity prices are highly connected to natural gas prices. As the commodity is exposed to international markets that pay a higher rate, U.S. prices are also expected to rise, as it has been witnessed during the energy crisis in 2022. Electricity demand is also expected to increase, especially in regions that will likely require more heating or cooling as climate change impacts progress, driving up electricity prices. Which states pay the most for electricity? Electricity prices can vary greatly depending on both state and region. Hawaii has the highest electricity prices in the U.S., at roughly 43 U.S. cents per kilowatt-hour as of May 2023, due to the high costs of crude oil used to fuel the state’s electricity. In comparison, Idaho has one of the lowest retail rates. Much of the state’s energy is generated from hydroelectricity, which requires virtually no fuel. In addition, construction costs can be spread out over decades.

The inflation rates of energy commodity prices in Germany began to significantly increase in 2021, a rise that continued throughout 2022. The gas inflation rate peaked in November 2022 at 82 percent. These increases in inflation were driven by tighter fossil fuel supplies since many economies began recovering from the coronavirus pandemic, and further worsened by supply fears following the Russia-Ukraine war. However, in 2024, the HCIP has decreased compared to the previous year.

The inflation rates of energy commodity prices in Romania began increasing in 2021, and have fluctuated widely since then. Gas has seen the steepest rise, with the inflation rate peaking at 76.9 percent in June 2022. These increases in inflation were driven further by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility.

The inflation rates of energy commodity prices in the Netherlands began to increase significantly in 2021. Electricity and gas have seen the steepest rise, with the inflation rate peaking in September 2022. These increases in inflation were driven by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility. Energy commodity prices showed an increase in the country in 2024, after dropping in 2023.

The inflation rates of energy commodity prices in Italy began to increase significantly in 2021 and continued throughout 2022. Electricity has seen the steepest rise, with the inflation rate reaching 199 percent in October 2022. These increases in inflation were driven by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility. Since the beginning of 2023, energy commodity prices have shown a decrease in the country. However, prices started to increase in 2024, with the escalation of the Middle-East conflict.

The inflation rates of various energy commodities in Turkey skyrocketed in 2022 and again in 2024. The annual rate of change of the energy price inflation peaked in June 2022 at 172.9 percent after climbing continuously from late 2020. Gas and electricity price inflation have also seen significant increases in the period of consideration. Gas inflation skyrocketed with an annual rate of change of over 500 percent at the end of 2024.

The inflation rate of gas prices in Czechia rose significantly throughout 2022. By comparison, electricity inflation rate saw the steepest increase in 2023, with the inflation rate standing at 148.6 percent in October of that year. As of December 2024, the rate of energy commodity prices have shown a slight increase, while gas, liquid fuels, and electricity prices recorded a decrease.

The retail price for electricity in the United States stood at an average of ***** U.S. dollar cents per kilowatt-hour in 2024. This is the highest figure reported in the indicated period. Nevertheless, the U.S. still has one of the lowest electricity prices worldwide. As a major producer of primary energy, energy prices are lower than in countries that are more reliant on imports or impose higher taxes. Regional variations and sector disparities The impact of rising electricity costs across U.S. states is not uniform. Hawaii stands out with the highest household electricity price, reaching a staggering ***** U.S. cents per kilowatt-hour in September 2024. This stark contrast is primarily due to Hawaii's heavy reliance on imported oil for power generation. On the other hand, states like Utah benefit from lower rates, with prices around **** U.S. cents per kilowatt-hour. Regarding U.S. prices by sector, residential customers have borne the brunt of price increases, paying an average of ***** U.S. cents per kilowatt-hour in 2023, significantly more than commercial and industrial sectors. Factors driving price increases Several factors contribute to the upward trend in electricity prices. The integration of renewable energy sources, investments in smart grid technologies, and rising peak demand all play a role. Additionally, the global energy crisis of 2022 and natural disasters affecting power infrastructure have put pressure on the electric utility industry. The close connection between U.S. electricity prices and natural gas markets also influences rates, as domestic prices are affected by higher-paying international markets. Looking ahead, projections suggest a continued increase in electricity prices, with residential rates expected to grow by *** percent in 2024, driven by factors such as increased demand and the ongoing effects of climate change.

Energy commodity price inflation in Slovakia has fluctuated in the period of consideration, with rates rising significantly in 2022 and dropping again in 2023 and 2024. Gas prices saw the highest inflation hike, with the annual change standing at 20.1 percent in August 2022. These increases in inflation were driven further by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility.

The inflation rates of energy commodity prices in Denmark have increased significantly since 2021. Gas saw an inflation rate of 179.3 percent in September 2022, the highest annual change in the last three years. These developments occurred following Russia's invasion of Ukraine, which has been the cause of uncertainty over Europe's security of gas supply, as well as intense energy price volatility. After decreasing in 2023, the harmonized price index of consumer prices for energy commodities showed a new increase as of the end of 2024.

Liquid fuel price inflation in Austria has risen considerably since 2021, with the inflation rate peaking at 118.5 percent in March 2022. By comparison, gas inflation rate peaked at 117 percent in October 2022. These increases in inflation of various energy commodities were partly driven by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility. Energy commodity prices have shown a new increase in the country after dropping in 2023.

The inflation rates of energy commodity prices in Ireland increased significantly in 2022. Liquid fuels saw the steepest rise, with the inflation rate standing at 126.6 percent in March 2022. Gas also saw an increase during late 2022, with inflation reaching its peak in October 2022 at 93.4 percent. These increases in inflation were driven by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility. By the middle of 2024, however, the energy commodity prices had decreased compared to the previous year.

The inflation rates of energy commodity prices in Spain increased significantly in 2021 and 2022. Electricity saw the steepest rise, with the inflation rate peaking at 107.8 percent in March 2022 before dropping later in the year. These increases in inflation were driven by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility.

Energy commodity price inflation in Finland has increased significantly since the beginning of 2021. Liquid fuel prices saw the steepest increase in that time, with the inflation rate peaking at 113.6 percent in March 2022, following Russia's invasion of Ukraine and overall market uncertainty. In November 2024, the HICP of energy commodities was negative.

Energy commodity price inflation in Hungary increased significantly in 2022. Gas price inflation recorded the highest increase, reaching 120 percent in October 2022. Energy commodity prices have increased in light of the Russia-Ukraine war and an ongoing fuel supply shortage. However, since July 2023, energy commodity price inflation has shown a decline in the country.

Liquid fuel price inflation in Portugal peaked in June 2022, with the HICP standing at 62.5 percent. By comparison, gas inflation rate peaked in October 2022 at 74 percent. Overall, the inflation rates of energy commodity prices in Portugal began to increase significantly in 2021. These increases in inflation were driven further by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility. After dropping in 2023, the HICP of energy commodities has increased in 2024.

The inflation rates of various energy commodities in the European Union began to decrease in late 2022 after skyrocketing earlier that year. Liquid fuels' inflation rate stood at -12 percent in November 2024 after having seen the steepest increase in June 2022 at 88 percent. These developments occurred following Russia's invasion of Ukraine, which has been the cause of uncertainty over Europe's security of gas supply, as well as intense energy price volatility. In 2024, the electricity and gas prices showed an increasing trend.

The inflation rates of energy commodity prices in Greece rose significantly in 2021 and 2022. Gas saw the steepest rise, with the inflation rate standing at 294 percent in September 2022. These increases in inflation were driven by Russia's invasion of Ukraine, which has caused uncertainty over Europe's security of gas supply, as well as intense energy price volatility. However, since the beginning of 2023, energy commodity prices have shown a decrease in the country.

The average wholesale electricity price in July 2025 in Spain is forecast to amount to ***** euros per megawatt-hour, a decrease compared to the previous month. The electricity price was equal to the same period in the previous year. Renewable energy dominance Wind energy has emerged as the leading source of electricity generation in Spain, accounting for over ** percent of the total in 2024. This shift towards renewables is further evidenced by the country's installed power capacity, which exceeded *** gigawatts in 2024. Solar photovoltaic leads with **** gigawatts of installed capacity, followed by wind and combined cycle. The growth in renewable energy capacity has been a key factor in shaping Spain's electricity market and influencing price trends. Consumption patterns and price fluctuations Despite the increase in renewable energy capacity, electricity consumption in Spain decreased to ****** terawatt hours in 2024, up from the previous year. In 2023, the average price of electricity was **** euros per megawatt-hour, a notable decrease from the record high of ***** euros per megawatt-hour in 2022. These price movements reflect the complex interplay between supply, demand, and the ongoing transition to renewable energy sources in Spain's electricity market.

Germany's electricity prices is forecast to reach a two-year high of ***** euros per megawatt-hour in February 2025 before increasing to 94 euros per megawatt-hour in June the same year. Electricity prices in the country have not yet recovered to pre-pandemic levels. Electricity price recovery German electricity prices began recovering back to pre-energy crisis levels in 2024, a period driven by a complex interplay of factors, including increased heating demand, reduced wind power generation, and water scarcity affecting hydropower production. Despite Germany's progress in renewable energy sources, with over ** percent of gross electricity generated from renewable sources in 2023, the country still relies heavily on fossil fuels. Coal and natural gas accounted for approximately ** percent of the energy mix, making Germany vulnerable to fluctuations in global fuel prices. Impact on consumers and future outlook The volatility in electricity prices has directly impacted German consumers. As of April 1, 2024, households with basic supplier contracts were paying around ** cents per kilowatt-hour, making it the most expensive option compared to other providers or special contracts. The breakdown of household electricity prices in 2023 showed that supply and margin, along with energy procurement, constituted the largest controllable components, amounting to **** and **** euro cents per kilowatt-hour, respectively. While prices have decreased since the 2022 peak, they remain higher than pre-crisis levels, underscoring the ongoing challenges in Germany's energy sector as it continues its transition towards renewable sources.