Household expenses related to energy are weighing heavily on East German families.
East German homes bear a disproportionate energy expense burden, as per verified estimations by comparison site Verivox. Once accounted for purchasing power disparities, heating, electricity, and fuel expenses tallied around 22% more than their western counterparts. This financial strain hits hardest in Thuringia, while Bavaria experiences the lightest burden.
On average, a German household with approximately two inhabitants spends 4,297 euros per annum on energy supplies, according to Verivox. West German households spend nearly the same, 4,280 euros, while their eastern counterparts shell out 100 euros extra, yet still fall behind in total expense.
However, the disparity becomes more significant when income levels are taken into account. Averaging out purchasing power, annual energy costs amount to 4,139 euros in the west and 5,042 euros in the east - a notable difference of over one-fifth. Households in Thuringia face the brunt of this difference, with energy costs 23% higher than the national average, followed by Bremen at 20%, Saxony at 19%, and Mecklenburg-Western Pomerania at 18%.
Southern German households bear less of a burden
Energy expenses are minimal in Bavaria, as Verivox indicates, standing 10% under the national average when purchasing power is considered. Baden-Württemberg lags eight%, while Hesse trails by a mere five%. The typical household income in West Germany is 58,333 euros, while it settles at only 48,977 euros in the East, marking a 16% decrease. Although the cost per unit of energy is the same for both regions, East German dwellings pay more due to the elevated price tags. According to Verivox, there is little deviation in fuel prices, but there is some disparity in electricity and heating costs.
"By and large, households in the former federal states must allocate around seven percent of their purchasing power for electricity, heating, and fuel, in contrast to around nine percent in the latter federal states," commented Thorsten Storck from Verivox. "The prices for energy between the East and West can be partly attributed to network fees. Operating, maintaining, and expanding the electricity grid show around a three percent difference in electricity costs and up to 10% in natural gas rates in the East."
The higher energy prices in the East lead to a significant financial strain, causing households in regions like Thuringia to spend over 23% more on energy than the national average. Conversely, households in Bavaria, known for its lower energy prices, spend only 10% less than the average when purchasing power is considered.
