Countries with expensive and cheap electricity rates in the world

Factors Affecting Electricity Tariffs in Various Countries

Electricity rates vary depending on various factors, such as energy policy, fuel stock, taxes, and infrastructure. In some countries, electricity tariffs are very cheap due to government subsidies or easy access to energy resources. However, in a number of other countries, electricity tariffs are much higher due to dependence on energy imports and expensive operational costs.

The country with the highest electricity tariff in the world

Countries in the European region have the highest average household electricity tariff in the world. This is caused by several factors, including taxes, environmental levies, additional costs for green energy, and maintenance of the electricity network. In addition to Europe, archipelagic countries also often have very high electricity tariffs. Examples are Bermuda, Cayman Islands, Bahamas, Barbados, and Cape Varde.

The main reason is because many archipelagic countries have to import energy to meet electricity needs. Transportation costs, the small number of customers, and the limited economies of scale cause electricity bills to become more expensive. This makes households in these countries more vulnerable to fluctuations in global energy prices.

Subsidies keep electricity rates affordable

Many countries with abundant fossil resources set very cheap electricity rates. One example is Iran, which has the cheapest household electricity tariff in the world, which is only 0.003 US dollars or the equivalent of Rp. 53 per kWh. Government subsidies are often the main factor in keeping electricity tariffs affordable for the community. Energy-producing countries such as Qatar, Kuwait, Saudi Arabia, and Algeria also benefit from low-cost domestic fuel access, so their electricity tariffs are much cheaper than European countries.

List of Countries with the Most Expensive Electricity Rates in the World

Here are the 10 countries with the highest average household electricity rates:

• Bermuda: 0.466 US dollars or IDR 8,297 per kWh
• Ireland: 0.447 US dollars or IDR 8,493 per kWh
• Italy: 0.415 US dollars or IDR 7,389 per kWh
• Cayman Islands: 0.411 US dollars or IDR 7,317 per kWh
• Germany: 0.406 US dollars or IDR 7,228 per kWh
• Belgium: 0.404 US dollars or Rp7,193 per kWh
• United Kingdom: 0.404 US dollars or IDR 7,193 per kWh
• Liechtenstein: 0.402 US dollars or IDR 7,157 per kWh
• Switzerland: 0.366 US dollars or IDR 6,526 per kWh
• Denmark: 0.361 US dollars or IDR 6,427 per kWh

The country with the cheapest electricity tariff in the world

On the other hand, there are a number of countries that have very cheap electricity rates. Some of them are:

• Iran: 0.003 US Dollar or IDR 53 per kWh
• Ethiopia: 0.006 US dollars or Rp107 per kWh
• Kyrgyzstan: 0.014 US dollars or Rp249 per kWh
• Iraq: 0.015 US dollars or IDR 267 per kWh
• Sudan: 0.015 US dollars or IDR 267 per kWh
• Cuba: 0.015 US dollars or IDR 267 per kWh
• Bhutan: 0.015 US Dollar or IDR 267 per kWh
• Angola: 0.016 US Dollar or IDR 285 per kWh
• Zambia: 0.023 US dollar or Rp409 per kWh
• Egypt: 0.024 US Dollar or Rp427 per kWh

Indonesia’s position in the electricity tariff list

Indonesia is in position 98 with an average household electricity tariff of 0.091 US dollars or Rp1,620 per kWh. Although not included in the list of countries with the lowest tariffs, Indonesia still has a relatively affordable electricity tariff compared to other countries in the world. However, the issue of the availability of coal supply and technical constraints at the PLTU is still a challenge that needs to be considered.