The study aims at contributing to the understanding of the microstructure of the German electricity market by identifying price determinants, possible deficits of efficiency due to market power and their likely effects on electricity supply. The study is an empirical investigation and falls into three parts. The first is a benchmarking of electricity prices. It aims at quantifying the relation of efficiency of generation and distribution and prices for the enduser. The second part analyses determinants of electricity prices for household customers, with a view to possible market power of vertically integrated energy companies. The third part analyses the effects of mergers in the German electricity market on electricity prices.