Electricity and Gas Prices in Europe: Which Countries Cost the Most?
Electricity Prices Across Europe: A Wide Range of Costs
As winter approaches, the demand for heating has surged across Europe. However, the cost of keeping homes warm varies significantly from one country to another. This disparity is influenced by a combination of factors including national energy policies, energy mixes, and tariff systems.
In the first half of 2025, electricity prices for households ranged from €6.2 per 100 kWh in Turkey to €38.4 in Germany, according to Eurostat data. The average price across 38 European countries, which includes EU members, candidate nations, and EFTA states, was €28.7. Western European countries generally had the highest nominal prices, with Belgium at €35.7 and Denmark at €34.9, closely followed by Germany. Prices also exceeded €30 in Italy, Ireland, and Czechia.
On the other hand, many Eastern European and EU candidate countries reported much lower rates. In countries like Turkey, Georgia, Kosovo, Bosnia and Herzegovina, and Montenegro, electricity costs were under €10 per 100 kWh. Among EU members, Hungary had the lowest electricity price at €10.4, while Spain (€26.1) and France (€26.6) remained below the EU average.
Experts from consultancy VaasaETT noted that these differences are due to various market-specific factors such as variations in energy generation mix, supplier procurement and pricing strategies, cross-subsidisation, and tariff structures.
Purchasing Power Adjustments Narrow Price Gaps
When adjusted for purchasing power standards (PPS), which account for local incomes and living costs, the gap between countries becomes smaller. For example, €1,000 might cover a month’s rent in Germany but could last two or three months in Bulgaria. This adjustment helps to provide a more accurate picture of how much money can actually buy in different regions.
In terms of electricity and gas prices, the PPS range spans from 12.8 in Iceland to 39.2 in Czechia, followed by Poland at 35 PPS. Italy and Germany also ranked among the top five, each exceeding 34 PPS. At the lower end, Malta, Turkey, and Hungary had the lowest PPS values at 13.7, 14, and 15 respectively. Nordic countries, particularly Norway and Finland, enjoy cheaper adjusted electricity prices, with Sweden also below the EU average of 28.6 PPS.
Stability and Shifts in Electricity Prices
In many countries, electricity prices remained relatively stable, with changes of less than 10% between the first halves of 2024 and 2025. However, some nations experienced significant shifts due to fluctuations in national currencies. Moldova and Turkey saw increases of more than 50%. Within the EU, Luxembourg and Ireland recorded notable rises of over 25%, while Slovenia, Finland, and Cyprus saw the largest declines, each exceeding 9% in absolute terms.
Gas Prices: A Wide Disparity
Household natural gas prices varied widely across Europe in the first half of 2025. Sweden had the highest price at €21.30 per 100 kWh, followed by the Netherlands at €16.2 and Denmark at €13.1. The EU average was €11.4. In contrast, Hungary, Croatia, and Romania had the lowest prices within the EU, at €3.07, €4.61, and €5.59 respectively. Including other countries with available data, Georgia had the cheapest natural gas at just €1.7, followed by Turkey at €2.1.
Among the EU's largest economies, France was the most expensive at €13, followed by Italy at €12.4 and Germany at €12.2. Spain remained the cheapest of the four, at €8.6.
VaasaETT experts highlighted that different procurement and pricing strategies, storage levels, temperature and weather conditions, interconnection with other markets, cross-subsidisation, and tariff mix all play significant roles in gas price disparities.
Adjusted Gas Prices Show a Different Picture
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%). Conversely, prices fell remarkably in several countries, with Slovenia (12.7%), Austria (11.5%), and Czechia (10.9%) recording declines of more than 10% in absolute terms.
