Electricity and Gas Prices in Europe: A Comprehensive Analysis
As winter's chill tightens its grip across the continent, the demand for heating soars, yet the cost of keeping homes warm varies significantly across Europe. The ongoing conflict in Ukraine continues to cast a long shadow over European energy markets, while national policies, energy mixes, and tariff structures contribute to the wide disparity in prices.
Electricity Prices: A Wide Range
In the first half of 2025, electricity prices for households ranged from a low of €6.2 per 100 kWh in Turkey to a high of €38.4 in Germany, according to Eurostat figures. The average price across 38 European countries, including EU members, candidate nations, and EFTA states, was €28.7. Western Europe, known for its higher nominal prices, saw Belgium (€35.7) and Denmark (€34.9) closely following Germany's lead. Prices exceeded €30 in Italy, Ireland, and the Czech Republic, indicating a significant cost burden for residents in these countries.
In contrast, Eastern European countries and EU candidate nations reported much lower rates. Turkey, Georgia, Kosovo, Bosnia and Herzegovina, and Montenegro all had electricity prices below €10 per 100 kWh. Among EU members, Hungary (€10.4) had the lowest electricity price, while Spain (€26.1) and France (€26.6) remained below the EU average.
Factors Influencing Price Differences
Experts from VaasaETT attribute these variations to several factors, including national energy mixes, supplier strategies, cross-subsidies, and tariff structures. These elements significantly impact the cost of electricity for households, making some countries more expensive than others.
Purchasing Power Adjustments
When adjusted for purchasing power standards (PPS), a measure that accounts for local incomes and the cost of living, the price gaps between countries become more manageable. A euro's purchasing power varies across Europe, with €1,000 covering a month's rent in Germany but only two or three months in Bulgaria. This adjustment narrows the gap, making it more accurate to compare the actual cost of living in different countries.
In terms of electricity and gas prices, the PPS-adjusted figures range from 12.8 PPS in Iceland to 39.2 PPS in the Czech Republic, followed by Poland (35 PPS). Italy and Germany also rank among the top five, each exceeding 34 PPS. At the lower end, Malta (13.7 PPS), Turkey (14 PPS), and Hungary (15 PPS) have lower adjusted prices. Nordic countries, particularly Norway (16 PPS) and Finland (18.7 PPS), offer cheaper adjusted electricity, with Sweden also below the EU average of 28.6 PPS.
Gas Prices: A Complex Story
Natural gas prices for households varied widely across Europe in the first half of 2025. Sweden recorded the highest price at €21.30 per 100 kWh, followed by the Netherlands (€16.2) and Denmark (€13.1). The EU average was €11.4. In contrast, Hungary (€3.07), Croatia (€4.61), and Romania (€5.59) had the lowest prices in the EU.
Including other countries with available data, Georgia had the cheapest natural gas at just €1.7, followed by Turkey (€2.1). Among the EU's largest economies, France (€13) was the most expensive, followed by Italy (€12.4) and Germany (€12.2). Spain (€8.6) remained the cheapest of the four.
Factors Behind Gas Price Disparities
VaasaETT experts highlight various factors contributing to gas price disparities, including different procurement and pricing strategies, storage levels, temperature and weather conditions, interconnection with other markets, cross-subsidization, and the tariff mix.
PPS-Adjusted Gas Prices
When adjusted for purchasing power, Sweden still topped the chart at 17.6 PPS, while Hungary had the lowest rate at 4.4 PPS within the EU. North Macedonia stood out as an exception, with 24.1 PPS, despite a relatively modest nominal price of €12.2.
Year-on-year household gas prices in the first half of 2025 increased the most in national currencies in Turkey (28.2%), North Macedonia (26%), Estonia (23.9%), Bulgaria (23.6%), and Sweden (20.9%). Prices fell remarkably in several countries, with Slovenia (12.7%), Austria (11.5%), and the Czech Republic (10.9%) recording declines of more than 10% in absolute terms.
