The war in Iran and its ripple effects are reaching German households that want to sign a new electricity contract. Since the conflict began, tariffs for new customers have climbed by roughly 15 percent, according to an analysis by Verivox reported by Der Spiegel.
Today the cheapest nationwide offers start just below 28 cents per kilowatt‑hour (kWh); in February they were comfortably under 24 cents per kWh. Still, these prices are far above the record lows seen in the crisis year of 2022.
The recent increase stems largely from a sharp rise in wholesale gas prices. Gas‑powered plants are crucial for securing Germany’s energy supply, particularly when wind and solar output is low. The prevailing rule is that the costliest plant required to meet demand sets the spot price at that moment.
Electricity suppliers book power for their customers months in advance on the forward market. Deliveries scheduled for April have grown about 24 percent more expensive since the start of the Iranian war, Verivox reports. “Such price hikes affect new‑customer offers the fastest” said Thorsten Storck, an energy expert at the portal, because these contracts are priced on a very short‑term basis. If world‑market prices stay high, Storck warned, “existing German customers will also see price increases”.