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 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.

The average wholesale electricity price in September 2025 in the United Kingdom is forecast to amount to*******British pounds per megawatt-hour, a decrease from the previous month. A record high was reached in August 2022 when day-ahead baseload contracts averaged ***** British pounds per megawatt-hour. Electricity price stabilization in Europe Electricity prices increased in 2024 compared to the previous year, when prices stabilized after the energy supply shortage. Price spikes were driven by the growing wholesale prices of natural gas and coal worldwide, which are among the main sources of power in the region.

… and in the United Kingdom? The United Kingdom was one of the countries with the highest electricity prices worldwide during the energy crisis. Since then, prices have been stabilizing, almost to pre-energy crisis levels. The use of nuclear, wind, and bioenergy for electricity generation has been increasing recently. The fuel types are an alternative to fossil fuels and are part of the country's power generation plans going into the future.

Graph and download economic data for Average Price: Electricity per Kilowatt-Hour in U.S. City Average (APU000072610) from Nov 1978 to Sep 2025 about electricity, energy, retail, price, and USA.

Graph and download economic data for Global price of Energy index (PNRGINDEXM) from Jan 1992 to Jun 2025 about energy, World, indexes, and price.

Energy Inflation in the United States increased to 2.80 percent in September from 0.20 percent in August of 2025. This dataset includes a chart with historical data for the United States Energy Inflation.

A survey conducted by the UK Department for Energy Security and Net Zero (DESNZ) in 2023 found that some 91 percent of UK residents were concerned about energy price hikes. Between 2012 and 2023, the level of concern increased. For instance, in 2012, 34 percent of the respondents were not very concerned or not concerned at all about steep rises in energy price in the future.

In the third quarter of 2025, Bermuda had the highest household electricity prices worldwide, followed by Ireland, Italy, and Germany. At the time, Irish households were charged around 0.44 U.S. dollars per kilowatt-hour, while in Italy, the price stood at 0.42 U.S. dollars per kilowatt-hour. By comparison, in Russia, residents paid almost 10 times less. What is behind electricity prices? Electricity prices vary widely across the world and sometimes even within a country itself, depending on factors like infrastructure, geography, and politically determined taxes and levies. For example, in Denmark, Belgium, and Sweden, taxes constitute a significant portion of residential end-user electricity prices. Reliance on fossil fuel imports Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, and Russia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour. In contrast, countries heavily reliant on fossil fuel imports for electricity generation are more vulnerable to market price fluctuations.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Household Energy in U.S. City Average (CUSR0000SAH21) from Jan 1967 to Sep 2025 about energy, urban, households, consumer, CPI, inflation, price index, indexes, price, and USA.

Complete dataset of average residential and commercial electricity rates in cents per kWh for all 50 states and D.C. as of December 2025.

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.

Germany Electricity decreased 17.60 EUR/MWh or 15.21% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for Germany Electricity Price.

Electricity prices in the U.S. have surged due to rising demand from heatwaves and data centers, alongside investments in grid infrastructure.

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.