Electricity prices are a sore spot for households worldwide, but who really pays the most? The short answer: Australians and Europeans often top the charts, with Denmark and Germany consistently ranked as the highest in Europe, and South Australia once dubbed the most expensive electricity market globally. Let’s break it down.

Which countries have the highest electricity prices?

Electricity prices vary widely depending on government policy, infrastructure, and reliance on imports. According to the latest international comparisons:

• Denmark and Germany: Both pay some of the highest retail electricity prices globally, largely due to green energy levies and taxes.

• Italy and Belgium: Also in Europe’s top tier, driven by high network charges and renewable surcharges.

• Australia: In past years, South Australia in particular reached record highs, partly due to its reliance on gas-fired generation and the costs of transitioning to renewables.

Why is electricity so expensive in some places?

Several factors drive prices up:

• Taxes and levies: In Germany, more than half of the electricity bill comes from taxes and green energy surcharges.

• Infrastructure costs: Australia’s high network costs (the “poles and wires”) push up retail bills.

• Market volatility: Countries heavily dependent on imported fossil fuels, like gas, face spikes when global markets tighten.

• Renewable integration: While wind and solar cut costs long-term, the upfront investment and backup systems add short-term pressure.

Is Australia still the most expensive?

For years, Australia’s households were told they were paying the “world’s highest electricity bills.” In reality, Australia’s electricity unit cost per kWh was lower than Europe, but average bills were higher because Aussie homes use more power — thanks to larger houses, more appliances, and heavy reliance on air conditioning.

Recent reforms and renewable investment have helped stabilise prices, but Australia still sits in the upper-middle range globally.

What can households and businesses do?

Consumers aren’t powerless. A growing number are using electricity brokers to navigate the complex energy market. These brokers compare suppliers, negotiate better rates, and manage contracts — often saving businesses thousands each year. For example, small businesses in Sydney or Melbourne can lock in long-term contracts through brokers to avoid market spikes.

FAQs

Why are European electricity prices so high?
Taxes, renewable subsidies, and reliance on gas imports keep bills elevated.

Does solar power lower household bills in Australia?
Yes. Households with rooftop solar often cut their grid costs significantly, though feed-in tariffs are lower than a decade ago.

Who pays the lowest electricity prices?
Countries like China, Canada, and some Middle Eastern nations — thanks to abundant local resources and state subsidies.

In the end, “who pays the most” depends on whether you look at the price per kilowatt-hour or the total bill size. Europeans often pay more per unit, but Australians can end up with fatter bills due to how much energy we use. For businesses and households looking to get smarter about energy costs, services like electricity brokers are becoming a go-to solution.