The expansion of industries and the increased usage of electricity by individuals across the world has greatly influenced and shaped the global cost of electricity.
The cost of electricity differs globally depending on factors like infrastructure, geography, and taxes and levies in different countries.
Residents in countries like Iran, Qatar, and Russia which are global players in the oil industry enjoy some of the cheapest electricity prices in the world thanks to their great crude oil and natural gas production.
However, other countries that mostly depend on the importation of fossil fuels for electricity generation are more vulnerable to fluctuations in the energy market prices.
Countries like Denmark, Belgium, and Sweden mostly depend on taxes as a significant contributor and determinant of residential end-user electricity prices.
10 countries with the highest electricity cost
According to Statista, below are the top 10 countries with the highest cost of electricity by household consumption:
| S/N | Country | Electricity Cost (Kw/h) | ₦ Equivalent(₦1,590 - $1) |
|---|---|---|---|
| 1 | Ireland | $0.47 | ₦747.30 |
| 2 | Italy | $0.45 | ₦715.50 |
| 3 | Belgium | $0.41 | ₦651.90 |
| 4 | United Kingdom | $0.4 | ₦636.0 |
| 5 | Germany | $0.4 | ₦636.0 |
| 6 | Denmark | $0.38 | ₦604.20 |
| 7 | Netherland | $0.31 | ₦492.90 |
| 8 | France | $0.28 | ₦445.20 |
| 9 | Australia | $0.27 | ₦429.30 |
| 10 | Uruguay | $0.25 | ₦397.50 |
In Nigeria, access to electricity has strongly been affected by insufficient power generation, frequent grid collapses and low transmission capacity.
According to the Special Adviser to the President on Energy, Olu Verhejen, over 100 million Nigerians still do not have access to reliable power supply despite the government's efforts which include spending over ₦5 trillion on electricity subsidies in the last few years.
Despite the fluctuations in power output, the country's electricity regulator, the Nigerian Electricity Regulatory Commission (NERC) in April, ordered an upward review of electricity tariffs from ₦66 per kilowatt hour (KwH) to ₦225/KwH indicating a 240% increase for Band A customers.