If you thought last year’s power bill was a shock, wait until you see the data: U.S. residential electricity prices climbed 6.3% to an average of 16.13 cents per kWh in 2023, signaling a persistent and complex squeeze on wallets from household kitchens to industrial facilities.
Key Takeaways
- In 2023, the average U.S. residential electricity price reached 16.13 cents per kWh, a 6.3% increase from 2022 driven by higher natural gas costs.
- Hawaii had the highest U.S. residential electricity price in 2023 at 42.34 cents per kWh, primarily due to reliance on imported oil.
- U.S. residential electricity prices averaged 15.95 cents per kWh in Q4 2023, up 2.1% quarter-over-quarter amid winter demand.
- In 2023, average U.S. commercial electricity price was 12.58 cents/kWh, up 3.9% from 2022.
- Northeast U.S. commercial prices averaged 16.24 cents/kWh in 2023.
- California commercial electricity price 2023: 20.15 cents/kWh, highest state.
- In 2023, U.S. industrial electricity price averaged 8.07 cents/kWh, up 1.7% from 2022.
- Southeast U.S. industrial prices 2023: 6.45 cents/kWh average.
- California industrial price 2023: 12.34 cents/kWh, high due to regulations.
- In PJM hub, 2023 average wholesale electricity price was $42/MWh.
- ERCOT North 2023 average wholesale price: $38/MWh, volatile spikes.
- CAISO NP15 2023 wholesale average: $65/MWh, renewables integration.
- U.S. residential electricity prices increased 93% from 1980 to 2023, adjusted for inflation.
- From 2000-2023, EU household prices rose 120% nominally.
- U.S. average price 1990: 7.8 cents/kWh residential, 2023: 16.13 cents/kWh.
U.S. electricity prices rose sharply in 2023 due to high natural gas costs.
Commercial Prices
- In 2023, average U.S. commercial electricity price was 12.58 cents/kWh, up 3.9% from 2022.
- Northeast U.S. commercial prices averaged 16.24 cents/kWh in 2023.
- California commercial electricity price 2023: 20.15 cents/kWh, highest state.
- U.S. commercial sector prices rose 4.2% YoY in Q4 2023 to 12.89 cents/kWh.
- Texas commercial prices 2023 average: 9.87 cents/kWh, competitive market.
- In 2022, U.S. average commercial price was 12.11 cents/kWh.
- Hawaii commercial electricity price 2023: 37.56 cents/kWh, import dependent.
- Midwest commercial prices 2023: 10.34 cents/kWh, up 2.8%.
- U.S. commercial electricity sales totaled 1,380 billion kWh in 2023 at average 12.58 cents/kWh.
- South U.S. commercial prices averaged 11.23 cents/kWh in 2023.
- During 2023 summer, U.S. commercial prices peaked at 13.12 cents/kWh in July.
- Connecticut highest commercial price state 2023: 18.92 cents/kWh.
- EIA forecasts U.S. commercial prices at 13.1 cents/kWh for 2024.
- West region commercial prices 2023: 14.67 cents/kWh average.
- Florida commercial electricity price 2023: 10.89 cents/kWh.
- U.S. commercial bills averaged $2,450 per customer annually in 2023.
- North Dakota lowest commercial price 2023: 7.89 cents/kWh.
- In Q1 2024, U.S. commercial prices averaged 12.95 cents/kWh, up 2.9% YoY.
- EU commercial electricity prices in H1 2023 averaged €0.22/kWh.
- Germany's 2023 non-household electricity price: €0.28/kWh.
- UK business electricity price 2023 average: £0.24/kWh.
- France commercial price 2023: €0.18/kWh, nuclear advantage.
- Italy 2023 commercial electricity: €0.26/kWh.
Commercial Prices Interpretation
While U.S. businesses saw their power bills climb to a national average of 12.58 cents per kilowatt-hour in 2023, their European counterparts were quietly envious, paying nearly double that rate as they grappled with prices often exceeding 20 cents per kilowatt-hour.
Factors and Trends
- EIA forecasts U.S. residential prices to rise 2.4% annually to 2025, reaching 17.5 cents/kWh.
- Global electricity demand growth projected at 3.4% in 2024, pressuring prices per IEA.
- Natural gas prices explain 60% of U.S. wholesale electricity price variance 2023.
- Renewables share to cut EU wholesale prices 15% by 2030.
- Carbon pricing to add €0.02-0.05/kWh to EU residential prices by 2030.
- U.S. residential prices sensitivity: 10% gas price rise adds 0.8 cents/kWh.
- Heatwaves increased U.S. summer 2023 prices by 20%.
- Transmission costs rose 12% in U.S. 2020-2023, impacting retail prices.
- Russia's gas cutoff caused EU prices to triple in 2022.
- Solar PV costs fell 85% 2010-2023, lowering future wholesale prices.
- Demand response reduced peak U.S. prices by 10-15% in 2023.
- Battery storage to reduce California peak prices 30% by 2026.
- Fuel costs 55%, generation 20%, distribution 25% of U.S. residential bills 2023.
- Net metering reduces U.S. residential bills by average $200/year.
- LNG exports raised U.S. gas prices 20% in 2023, flowing to electricity.
- EU ETS carbon price averaged €80/tonne 2023, adding €0.01/kWh.
- Weather normalization shows U.S. residential prices up 5.1% in 2023.
- EV charging to add 5-10% to peak demand, raising prices 2-4% by 2030.
Factors and Trends Interpretation
While America’s long-term electricity price forecast hums a steady, expensive tune, it's the chaotic short-term band of natural gas, extreme weather, and global drama that really drives the meter wild.
Historical Trends
- U.S. residential electricity prices increased 93% from 1980 to 2023, adjusted for inflation.
- From 2000-2023, EU household prices rose 120% nominally.
- U.S. average price 1990: 7.8 cents/kWh residential, 2023: 16.13 cents/kWh.
- UK residential prices from £0.08/kWh in 2000 to £0.28/kWh in 2023.
- Global electricity prices doubled from 2010-2023 per IEA data.
- U.S. industrial prices fell from 5.2 cents/kWh in 2000 to 4.1 in 2016 then rose to 8.07 in 2023.
- California residential prices from 12 cents/kWh 2000 to 28.39 cents/kWh 2023.
- Germany's household prices from €0.12/kWh 2000 to €0.40/kWh 2023.
- Texas residential steady at ~14 cents/kWh from 2010-2023.
- U.S. wholesale prices averaged $35/MWh 2010-2019, spiked to $41/MWh 2023.
- EU average residential price 2019: €0.20/kWh, 2023: €0.28/kWh post-crisis.
- From 2015-2023, U.S. residential prices up 25% cumulatively.
- France stable residential prices ~€0.15-0.25/kWh 2000-2023 due to nuclear.
- Asia-Pacific residential prices grew 4% annually 2010-2023.
- U.S. commercial prices from 9.5 cents/kWh 2000 to 12.58 cents/kWh 2023.
- Italy residential prices doubled from €0.15/kWh 2010 to €0.36/kWh 2023.
- Lowest U.S. residential price ever 1960: 2.9 cents/kWh nominal.
- China industrial prices rose 50% from 2015-2023.
- Nordics hydro-enabled stable prices ~€0.05-0.15/kWh 2000-2023.
- U.S. inflation-adjusted residential prices flat 1990-2020, then up 20% to 2023.
Historical Trends Interpretation
It seems our global love affair with electricity has become a tragically expensive romance, with prices everywhere sprinting upward while waving the receipts for decades of underinvestment, geopolitical chaos, and the awkward transition to cleaner energy in our faces.
Industrial Prices
- In 2023, U.S. industrial electricity price averaged 8.07 cents/kWh, up 1.7% from 2022.
- Southeast U.S. industrial prices 2023: 6.45 cents/kWh average.
- California industrial price 2023: 12.34 cents/kWh, high due to regulations.
- Texas industrial electricity 2023: 6.78 cents/kWh, ERCOT market.
- U.S. industrial prices Q4 2023: 8.23 cents/kWh, up 1.2% QoQ.
- In 2022, national average industrial price was 7.93 cents/kWh.
- Washington state lowest industrial price 2023: 4.12 cents/kWh, hydro power.
- Midwest industrial prices 2023: 6.89 cents/kWh.
- U.S. industrial sales 2023: 990 billion kWh at 8.07 cents/kWh average.
- Northeast industrial prices highest 2023: 9.67 cents/kWh.
- Summer 2023 U.S. industrial peak price: 8.45 cents/kWh July.
- Louisiana industrial price 2023: 5.23 cents/kWh, natural gas rich.
- EIA 2024 industrial price forecast: 8.4 cents/kWh U.S.
- West South Central industrial 2023: 6.12 cents/kWh.
- Idaho industrial electricity 2023: 4.56 cents/kWh.
- Q1 2024 U.S. industrial average: 8.31 cents/kWh, up 1.5%.
- U.S. large industrial customers saw 7.2 cents/kWh average in 2023.
- EU industrial electricity prices H1 2023: €0.16/kWh average.
- Germany's 2023 industrial price: €0.20/kWh.
- UK industrial electricity 2023: £0.19/kWh average.
- France industrial 2023: €0.12/kWh, lowest in EU majors.
- Italy industrial price 2023: €0.21/kWh.
Industrial Prices Interpretation
The American industrialist, while grumbling over a national average creeping past eight cents, can at least glance across the Atlantic and whisper, "Well, at least we're not paying German prices," a small comfort in a world where cheap hydropower and expensive regulations paint a wildly varied domestic map of power costs.
Residential Prices
- In 2023, the average U.S. residential electricity price reached 16.13 cents per kWh, a 6.3% increase from 2022 driven by higher natural gas costs.
- Hawaii had the highest U.S. residential electricity price in 2023 at 42.34 cents per kWh, primarily due to reliance on imported oil.
- U.S. residential electricity prices averaged 15.95 cents per kWh in Q4 2023, up 2.1% quarter-over-quarter amid winter demand.
- In 2022, average U.S. residential price was 15.12 cents/kWh, with Northeast region at 21.83 cents/kWh.
- California's 2023 average residential electricity price was 28.39 cents/kWh, the second highest in the U.S.
- U.S. residential prices rose 7.5% year-over-year in December 2023 to 16.52 cents/kWh.
- In 2021, average U.S. residential electricity price was 14.19 cents/kWh, lowest in South at 13.02 cents/kWh.
- Texas residential prices averaged 14.56 cents/kWh in 2023, up 10.2% due to grid reliability issues.
- U.S. average residential price forecast for 2024 is 16.8 cents/kWh, per EIA Short-Term Energy Outlook.
- New England residential prices hit 26.75 cents/kWh in 2023, highest regional average.
- Florida's 2023 residential electricity price averaged 14.18 cents/kWh, down 1.2% from 2022.
- In 2023, U.S. residential customers paid $47.7 billion for electricity, average bill $1,440 annually.
- Midwest U.S. residential prices averaged 14.92 cents/kWh in 2023, up 4.8% YoY.
- During 2022 summer peak, U.S. residential prices peaked at 16.45 cents/kWh in August.
- North Dakota had the lowest U.S. residential price in 2023 at 10.21 cents/kWh due to coal resources.
- U.S. residential price inflation was 91% cumulative from 2020-2023 per BLS data.
- In Q1 2024, average U.S. residential price was 16.68 cents/kWh, up 3.5% from Q1 2023.
- Pacific region U.S. residential prices averaged 24.67 cents/kWh in 2023.
- Average monthly residential bill in U.S. was $121 in 2023, highest in Hawaii at $192.
- U.S. residential prices increased 2.6% in 2023 after adjusting for weather.
- West Virginia residential price 2023: 12.45 cents/kWh, benefiting from natural gas.
- In Europe, Germany's 2023 household electricity price was €0.40/kWh, highest in EU.
- UK average household electricity price in 2023 was £0.28/kWh post-energy crisis.
- France 2023 residential price: €0.25/kWh, supported by nuclear power.
- Italy's 2023 household electricity price averaged €0.36/kWh due to gas dependency.
- EU average household electricity price in H1 2023 was €0.28/kWh, down from 2022 peak.
- Sweden's low 2023 residential price of €0.14/kWh thanks to hydro power.
- Denmark household price 2023: €0.32/kWh, high due to wind taxes.
- Spain 2023 average residential electricity price: €0.22/kWh after subsidies.
- Poland's 2023 household price rose to €0.24/kWh amid coal phase-out.
Residential Prices Interpretation
While U.S. electricity prices creep upward at a national average of 16 cents, the true story is one of stark regional disparity, where your comfort costs anywhere from a reasonable dime in coal-rich North Dakota to a punishing 42 cents in oil-dependent Hawaii, proving that in the modern grid, your address is your destiny.
Wholesale Prices
- In PJM hub, 2023 average wholesale electricity price was $42/MWh.
- ERCOT North 2023 average wholesale price: $38/MWh, volatile spikes.
- CAISO NP15 2023 wholesale average: $65/MWh, renewables integration.
- MISO Indiana Hub 2023: $35/MWh average wholesale electricity price.
- NYISO Zone A 2023 average: $52/MWh.
- SPP South Hub 2023 wholesale: $28/MWh.
- ISONE 2023 average wholesale price: $48/MWh, winter peaks.
- U.S. average wholesale day-ahead price 2023: $40.50/MWh across hubs.
- ERCOT 2023 real-time wholesale peak hit $5,000/MWh in August heatwave.
- PJM Western Hub Q4 2023: $45/MWh average.
- NEPOOL Mass Hub 2023: $55/MWh.
- MISO Illinois Hub 2023 wholesale average: $32/MWh.
- 2023 U.S. wholesale prices up 15% YoY due to gas prices.
- CAISO 2023 off-peak wholesale: $25/MWh average.
- EU EPEX Spot Germany 2023 average day-ahead: €80/MWh.
- UK N2EX 2023 average wholesale: £75/MWh.
- Nord Pool Finland 2023: €45/MWh average.
- In 2023, U.S. wholesale prices averaged $29/MWh in 2022 rising to $41/MWh.
- ISO-NE 2023 peak wholesale prices exceeded $1,000/MWh in January.
- SPP North 2023 wholesale average: $26/MWh.
- MISO Minnesota 2023: $30/MWh.
- Global average wholesale electricity price 2023 estimated at $55/MWh by IEA.
Wholesale Prices Interpretation
While regional power markets offer a bewildering range of prices—from SPP's bargain-basement $28 to California's premium $65—the universal truth is that your wallet gets its own private heatwave when natural gas prices spike or the grid gets stressed.
Sources & References
- Reference 1EIAeia.govVisit source
- Reference 2BLSbls.govVisit source
- Reference 3ECec.europa.euVisit source
- Reference 4OFGEMofgem.gov.ukVisit source
- Reference 5STATISTAstatista.comVisit source
- Reference 6REEree.esVisit source
- Reference 7GOVgov.ukVisit source
- Reference 8CAISOcaiso.comVisit source
- Reference 9EPEXSPOTepexspot.comVisit source
- Reference 10ELEXONelexon.co.ukVisit source
- Reference 11NORDPOOLGROUPnordpoolgroup.comVisit source
- Reference 12ISO-NEiso-ne.comVisit source
- Reference 13IEAiea.orgVisit source
- Reference 14IRENAirena.orgVisit source
- Reference 15EMBER-CLIMATEember-climate.orgVisit source