Several components go into the retail gas price that households pay to gas suppliers.

  • Energy procurement and supply costs, plus the supplier's margin (i. e. the amount set through market competition)
  • Regulated network tariffs (which may include charges for meter operation, metering and billing) that must be paid to the grid operator for supplying a particular customer
  • State-introduced price components (taxes and rights-of-way use fees)

State-introduced price components and network fees are set by legislators or regulators and thus fall outside the supplier's control. The supplier's procurement and supply costs, by contrast, are determined by market competition and can vary from one supplier to the next.

In 2016, the competition-based share in the gas price totalled around 50.5%. Grid use fees (including metering and billing costs) accounted for 23.8% and state-imposed price components for 26.0% of the gas price (diagram).

Composition of the gas price for private households consuming between 5,556 and 55,556 kWh in 2016, as of 1 April 2016 Enlarge

Composition of the gas price for private households consuming between 5,556 and 55,556 kWh in 2016, as of 1 April 2016

© Monitoring Report by Federal Network Agency/Federal Cartel Office

The 2016 Monitoring Report (PDF, 5MB) from the Bundesnetzagentur and the Bundeskartellamt puts the total average gas price at 6.54 cents/kWh for private households, based on an annual gas consumption of between 5,556 kWh and 55,556 kWh. Of this price, energy procurement and supply accounted for 3.30 ct/kWh on average (competition-based share). The average gas price for private households has fallen by approximately 2.1% compared to the previous year. This trend towards a clear decline in gas prices for final consumers is thus continuing.

Grid use fees vary across the country, because they depend on the costs in the specific grid area and the gas consumption in that area. According to the 2016 Monitoring Report, the nation-wide average on 1 April 2016 was 1.56 ct/kWh (including metering and billing costs).