As Europe braces for another cold winter, energy inequality is once again at the forefront. Despite falling wholesale costs since the 2022–23 energy crisis, households across the continent still face starkly different electricity and gas bills, depending on where they live.
New data from Eurostat (H1 2025) reveals that electricity prices for European households range sixfold between the cheapest and most expensive countries, reflecting deep structural and policy differences in Europe’s energy landscape.
Electricity and Gas Prices Across Europe
In the first half of 2025, electricity prices for households ranged from €6.2 per 100 kWh in Turkey to €38.4 in Germany — a gap of over 520%. The European average (including EU, EFTA, and candidate countries) was €28.7 per 100 kWh.
| Country | Electricity Price (€/100 kWh) | Region/Status |
|---|---|---|
| Turkey | €6.2 | EU Candidate |
| Hungary | €10.4 | EU Member (Lowest in EU) |
| Spain | €26.1 | EU Member |
| France | €26.6 | EU Member |
| Belgium | €35.7 | EU Member |
| Denmark | €34.9 | EU Member |
| Germany | €38.4 | EU Member (Highest in Europe) |
“Differences in household electricity prices reflect more than wholesale market dynamics — they also stem from taxes, grid fees, and national tariff policies,” explained Dr. Mikael Laitinen, Senior Analyst at VaasaETT Energy Consultancy.
“In many Western European countries, environmental levies and renewable surcharges significantly raise end-user prices, while Eastern nations often maintain state-regulated tariffs.”
Purchasing Power Standards Narrow the Gap
Nominal prices only tell part of the story. When adjusted for purchasing power standards (PPS) — which account for local income levels and cost of living — the difference between high- and low-price countries narrows considerably.
For example, a kilowatt-hour may cost less in Hungary or Turkey, but average income is also much lower than in Germany or Denmark.
| Country | Electricity Price (PPS) | Observation |
|---|---|---|
| Iceland | 12.8 PPS | Lowest electricity burden |
| Malta | 13.7 PPS | Below EU average |
| Turkey | 14 PPS | Low price, low income |
| Hungary | 15 PPS | EU’s lowest in PPS terms |
| Germany | 34.2 PPS | Among EU’s highest |
| Italy | 34.5 PPS | Among EU’s highest |
| Czechia | 39.2 PPS | Highest in Europe |
| EU Average | 28.6 PPS | – |
“The purchasing power adjustment shows that affordability, not absolute price, defines energy vulnerability,” said Elena Marquez, energy economist at the European Energy Poverty Observatory.
“Households in lower-income countries may face equal or even greater hardship, despite paying less in nominal terms.”
Gas Prices: Sweden Highest, Georgia Lowest
Natural gas prices have followed a similar, if not sharper, divide.
In the first half of 2025, households in Sweden paid €21.30 per 100 kWh — nearly ten times more than those in Georgia (€1.7) and Turkey (€2.1).
| Country | Gas Price (€/100 kWh) | Region/Status |
|---|---|---|
| Georgia | €1.7 | Non-EU |
| Turkey | €2.1 | EU Candidate |
| Hungary | €3.07 | EU Member (Lowest in EU) |
| Romania | €5.59 | EU Member |
| Spain | €8.6 | EU Member (Cheapest among major economies) |
| Germany | €12.2 | EU Member |
| Italy | €12.4 | EU Member |
| France | €13 | EU Member |
| Netherlands | €16.2 | EU Member |
| Sweden | €21.3 | EU Member (Highest in Europe) |
| EU Average | €11.4 | – |
“Northern European markets are typically more liberalized and taxed, leading to higher consumer prices,” explained Dr. Erik Haldorsson, gas market specialist at NordEnergi Institute. “By contrast, in Central and Eastern Europe, state interventions, storage subsidies, and fixed-rate schemes keep prices artificially low.”
Gas Prices Adjusted for Purchasing Power (PPS)
Once adjusted for purchasing power, the disparities shift — but not always in predictable ways.
| Country | Gas Price (PPS) | Observation |
|---|---|---|
| Hungary | 4.4 PPS | Lowest in EU |
| Malta | 5.3 PPS | Very low burden |
| Sweden | 17.6 PPS | Highest in Europe |
| North Macedonia | 24.1 PPS | Exceptionally high despite low nominal cost |
| EU Average | 12.4 PPS | – |
This shows that affordability challenges can persist even where energy prices seem modest in euros — particularly in countries with weaker purchasing power.
Year-on-Year Changes (2024–2025)
Between the first halves of 2024 and 2025, several European nations experienced double-digit increases in energy costs in their local currencies.
- Electricity rose over 25% in Luxembourg and Ireland, while Slovenia, Finland, and Cyprus saw declines of more than 9%.
- Gas prices increased most sharply in Turkey (+28.2%), North Macedonia (+26%), Estonia (+23.9%), Bulgaria (+23.6%), and Sweden (+20.9%).
“Currency fluctuations and national tax adjustments have played as big a role as global energy market trends,” noted Paolo Greco, Senior Policy Advisor at Eurelectric. “Some countries used fiscal measures to buffer households, while others began phasing out temporary subsidies introduced during the 2022 energy crisis.”
Why Prices Differ So Widely?
Experts identify six major factors behind Europe’s divergent energy prices:
- Energy generation mix — Renewables vs. fossil dependency
- Tariff structures — Taxes, grid costs, and environmental levies
- Market liberalization — Degree of competition among suppliers
- Cross-subsidization — Industrial vs. residential pricing
- Exchange rate volatility — Especially in non-euro economies
- National policy interventions — Subsidies and price caps
Countries that combine high taxes, limited interconnection, and strong environmental levies — such as Germany, Denmark, and the Netherlands — tend to top the price charts.
Affordability and Energy Poverty
High energy prices do not automatically translate into fuel poverty — but they exacerbate it when combined with low household income and poor building efficiency.
In 2025, 41 million Europeans were unable to keep their homes adequately warm, according to Eurostat. While energy markets have stabilized compared to 2022, affordability remains a challenge, especially for low-income and rural households.
“Energy prices are not just about economics — they’re about equity,” said Claire Dumont, Policy Coordinator at Fuel Poverty Europe. “We need a coordinated EU approach that links market policy, housing renovation, and social protection to ensure energy is a right, not a privilege.”
Conclusion
Electricity and gas costs across Europe remain uneven and politically sensitive. Even as wholesale prices ease, the burden on consumers depends heavily on national policy choices, income levels, and energy efficiency.
For Europe to meet its 2030 energy transition goals, addressing affordability and fairness will be as critical as ensuring supply and decarbonization.