World’s most expensive electricity is available in this country, Jasho will be shocked to know the price of one unit Gujarati

Electricity rates vary across the world. In some countries electricity is very cheap, while in some countries it becomes difficult for a common man to even pay the electricity bill. But do you know that there is a country in the world where the price of electricity is the highest? The world’s most expensive electricity is available in the island country ‘Bermuda’ located in the Atlantic Ocean. Here, people get around 0.46 to 0.47 American dollars per kilowatt hour (unit) i.e. around Rs. as per Indian currency. 38 to Rs. 40 per unit has to be paid. Apart from Bermuda, rich countries of Europe like Germany, Italy and Ireland also lead the list of countries with the most expensive electricity in the world.

• What is the main reason why electricity is so expensive in Bermuda?

Complete dependence on imported fuel: The biggest reason why electricity is expensive in Bermuda is its dependence on fossil fuels imported from abroad. Being a small island country, Bermuda does not have any major domestic sources of energy. Here electricity is mostly generated by importing diesel and oil. Therefore, whenever the price of oil increases in the global market, it directly impacts the share of consumers.

Heavy taxes and green energy charges: In developed countries like Germany, electricity bills are not determined only on the basis of electricity production, but also include heavy taxes collected by the government and environment related charges (green charges). This ‘Renewable Energy Surcharge’ is used to move towards clean energy and a large part of this cost is recovered from consumers by increasing electricity rates.

Huge cost of maintaining the power grid: The high cost of maintaining and upgrading power infrastructure is responsible for the high cost of electricity in countries like Italy and Ireland. Strengthening the electricity grid, providing electricity to the population living in hinterland and meeting the growing energy needs of data centers require huge investments, which are ultimately added to the customers’ bills.

small market and low population: In sparsely populated island countries the number of customers to share the cost of setting up power plants and transmission networks is very limited. For this reason, the cost of household infrastructure increases significantly in such small countries as compared to countries with large population and large power networks.