1 year Ukraine war: Energy about 12 percent more expensive

One year after the outbreak of the Ukraine war, energy costs for private households in Germany are around 12 percent above the pre-war level. After spending on heating, electricity and fuel initially rose sharply, they have fallen by 21 percent since their peak in October 2022. This is shown by an evaluation of the comparison portal Verivox.

Model household with additional costs of 679 euros

The energy costs for a model household in February 2023 are 6,543 euros per year. In February 2022, the same amount of energy still cost 5,864 euros. As a result, expenditure on energy rose by around 12 percent over the year. The household budget of a three-person model household is charged an additional 679 euros.

At its peak, energy costs had risen by more than a third (35 percent) since the outbreak of war. In October 2022, the costs for heating, electricity and fuel reached a new all-time high of 7,926 euros. Never before have households in Germany had to spend more on energy.

Gas is 19 percent more expensive - electricity prices are up 16 percent

Electricity and gas customers in particular had to accept a significant price increase in the past 12 months. With gas, the annual costs for 20,000 kilowatt hours rose from 2,829 euros to currently 3,372 euros. This corresponds to an increase of 19 percent. In the course of the year, the price high was 4,349 euros. From there, too, the gas price has corrected downwards by 35 percent to date.

Electricity has become more expensive by 16 percent over the year. For a private household with an annual consumption of 4,000 kWh, the electricity costs rose from 1,553 euros to 1,802 euros. Since the all-time high in October 2022 (2,153 euros), however, prices have already fallen again by 16 percent.

"Wholesale prices for gas and electricity are falling rapidly. On the one hand, this is due to the lower demand from Asia, on the other hand, the fear in the market that there could be major bottlenecks in the supply of fuel has disappeared," says Thorsten Storck, energy expert at Verivox. "Many energy suppliers are now passing on these discounts - new customers in particular can benefit from this development. The prices of the national suppliers are now back to the pre-war level."

Plus 5 percent for heating oil - tank prices 2 percent higher

For heating oil customers, heating has become more expensive by a moderate 5 percent within 12 months. If 20 hectoliters of heating oil cost 1,955 euros in February 2022, a year later it is 2,053 euros. However, the costs here were also significantly higher in the meantime. At its peak, heating oil cost 3,075 euros.

The price of petrol has not changed year-on-year (plus 0.2 percent), while diesel rose by 6 percent. On a volume-weighted average, consumers have to spend 2 percent more on filling up.

The Verivox energy cost index shows the average development of energy prices for a German household. The costs for heating, electricity and mobility are taken into account on a volume-weighted basis. The base month of the energy cost index is January 2015. The basis is a three-person model household with an annual heating requirement of 20,000 kilowatt hours (kWh), an electricity consumption of 4,000 kWh and an annual mileage of 13,300 kilometers.

How should we respond to rising energy prices?

As energy prices continue to rise, households can take steps to reduce their energy bills, increase energy efficiency, and contribute to a more sustainable energy future.

Reduce energy consumption. This can be done by making simple changes in behavior, such as turning off lights and appliances when not in use, taking shorter showers, and reducing air conditioning use. By using energy more efficiently, households can lower their energy bills and reduce their carbon footprint. This approach requires a commitment to changing habits and being mindful of energy use.

Invest in energy-efficient products. Energy-efficient products, such as LED light bulbs, energy-efficient appliances, and smart thermostats, can help to reduce energy consumption and lower energy bills. While energy-efficient products may be more expensive upfront, they can pay off in the long run by reducing energy costs. Governments often offer tax incentives and rebates for energy-efficient products, making them more affordable for households.

Renewable energy sources. Renewable energy sources, such as home solar system kit(https://www.renogy.com/solar-kits/), wind turbines, and hydropower, can provide clean energy and lower energy bills. While investing in renewable energy sources may require an upfront investment, the long-term benefits can be substantial. Households can also participate in community solar projects or purchase renewable energy certificates to support the development of renewable energy.

Improve home insulation. By improving home insulation, households can reduce energy consumption and lower energy bills. Home insulation can include insulating walls, attics, and crawl spaces, as well as sealing air leaks around windows and doors. Governments often offer incentives and rebates for home insulation improvements, making them more affordable for households.

Consider alternative transportation options. Cars and trucks are a major source of greenhouse gas emissions, and transportation costs can be a significant part of household budgets. By using public transportation, walking, biking, or carpooling, households can reduce transportation costs and reduce their carbon footprint. In addition, electric vehicles are becoming more affordable and can provide a lower-cost and more sustainable transportation option for many households.

Participate in demand response programs. Demand response programs are designed to reduce energy consumption during periods of high demand, such as hot summer afternoons. By participating in demand response programs, households can receive incentives for reducing energy consumption during these periods, which can lower energy bills and reduce strain on the energy grid.

Consider alternative energy suppliers. In some areas, households may have the option to choose their energy supplier, allowing them to select suppliers that offer lower prices or renewable energy options. Install a solar powered generator (https://www.renogy.com/renogy-gear/power-stations/) and use batteries (12v lithium battery is the most common type) to store the converted electricity during the day for use at night. This approach requires research and careful consideration of the available options.

Educate themselves about energy use and sustainability. By learning about energy consumption, energy efficiency, and renewable energy, households can make informed decisions about how to respond to rising energy prices. Governments and non-profit organizations often offer resources and educational materials on energy use and sustainability.

In conclusion, rising energy prices can be a significant challenge for households, but there are ways to respond that can reduce energy costs, lower carbon footprint, and contribute to a more sustainable energy future.

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This release was published on openPR.