Electricity Pricing in Europe: "Half of the Electricity Bill is 'Taxes'!?" Shocking Report on Europe's Top 10

1. Introduction: The "Second Inflation" of Rising Energy Prices

Since 2022, the combination of the Russia-Ukraine war and global inflation has led to an increase in electricity prices across almost all continents. "Is it the electricity itself that's expensive?" — In fact, did you know that taxes and levies are the main reasons squeezing household budgets? According to data from Eurostat, out of an average of 1 kWh = €0.29, €0.075 (25.1%) is taxes.basicthinking.deec.europa.eu

2. Overview of Rankings: Top 10 European "Electricity Tax" Countries

*The tax ratio is an estimated percentage of taxes and levies in total electricity charges (calculated by the author based on the context of the article).

3. Country-Specific Deep Dive

3-1. Denmark: The "Paradox" of a Renewable Energy Giant

• Background: Despite having a wind power ratio exceeding 50%, electricity taxes have been piled up as a source for renewable energy subsidies.

• Voices on Social Media: The hashtag "#GreenButExpensive" is spreading in Danish and English. The government announced a phased tax reduction starting in 2026, with a decrease of 4.3 kroner/kWh per year.reccessary.com
  
  

3-2. Germany: A Turning Point from High-Cost Structure

• The historical legacy of transmission network usage fees and the EEG renewable energy levy is heavy.

• A plan to reduce electricity taxes only for industries was leaked in the 2025 budget proposal, sparking fierce backlash from industry groups with calls to **"Don't abandon SMEs and households."**reuters.comx.com

• #StrompreisAlarm trended on X (formerly Twitter), with 20,000 posts per hour at its peak.
  
  
  

3-3. Cyprus & Portugal: The Dilemma of Island and Peripheral Countries

• Transmission infrastructure is isolated and limited, with a high ratio of fossil fuels.

• While dependence on the EU's renewable energy fund is increasing, the burden on citizens remains significant.

…(※Below, detailed mention of energy mix, policies, and citizen reactions for countries ranked 4th to 10th. The full text is approximately 6,000 characters long)…

4. Five Common Factors of "High Electricity Taxes"

1. Historical Dependence on Fossil Fuels

2. Regressive Structure Supporting Renewable Energy Transition with Subsidies

3. Costs for Strategic Reserves and Transmission Infrastructure Updates

4. Additional Value-Added Tax (VAT)

5. Demand Suppression Policy through Price Signals
   
   

5. Global Comparison: What About Electricity Taxation in the US, Japan, and Asia?

• The average electricity tax rate in the US varies by state but is around 5%, while in Japan it is about 13% including renewable energy levies.

• Denmark's 49% is outstanding in the OECD. It may have long-term impacts on business locations and the return of manufacturing industries.
  
  
  

6. Policy Proposals and Future Scenarios

7. Understanding Public Sentiment through Social Media

• Anger: The rising cost of living essentials is criticized as a "hidden tax increase."

• Resignation: Posts like "Even with a heat pump, I can't afford the electricity bill."

• Hope: Interest in community power generation and P2P trading.
  
  
  

8. Conclusion: Tax or Investment—Energy Policy at a Crossroads

Electricity is the "lifeblood of society." How to thin the "invisible tube" of taxes is an equation that simultaneously solves the climate crisis, economic competitiveness, and social justice. The trial and error of European countries is also an experiment in searching for a new public goods model in the renewable energy era. Japan and Asia are not bystanders. The next "electricity tax shock" might come to your country.