Cheaper gas brought some relief to European households in early 2026, but electricity prices barely budged. With crisis-era support fading and geopolitical tensions rising, the respite may prove short-lived.

The average household electricity price in the EU fell to €0.28 per kWh in the first half of 2026. That was a 2.2 per cent decrease compared with the second half of 2025. Prices nevertheless remained well above their pre-energy crisis levels in 2022.

Gas brought more substantial relief. The average price fell to €0.11 per kWh, down 10.2 per cent from the second half of 2025. Year on year, it was 3.5 per cent lower. This marked the lowest average gas price since the first half of 2022.

Businesses saw similar trend. EU electricity prices for non-household consumers fell 5.4 per cent year on year to around €0.18 per kWh, while gas averaged €0.0616 per kWh.

The figures come from Eurostat’s latest data, published on 30 October. But they do not signal a return to cheap energy. Prices remain above pre-crisis levels, and differences between member states are considerable. Comparisons between consecutive half-years can also reflect seasonal fluctuations.

Same energy, very different bills

Year-on-year figures show just how unevenly the price changes have affected Europe. Electricity became more expensive in 13 member states, while prices fell in 11. They remained broadly stable in three others.

Romania recorded the sharpest increase, with electricity prices soaring 51.9 per cent year on year. Ireland followed with a rise of 19.8 per cent, and Finland with 18.4 per cent. At the other end of the scale, prices fell 31.7 per cent in Denmark and 24.1 per cent in Luxembourg.

In nominal terms, Irish households faced the highest electricity prices, at €0.39 per kWh. Germany and Belgium followed at €0.36. Hungary had the cheapest electricity, at just €0.11 per kWh, followed by Malta and Bulgaria (both €0.13).

Adjusting for purchasing power paints a different picture. Households in Romania, Poland and Czechia faced the heaviest relative electricity costs. This measure accounts for differences in price levels between countries. It therefore offers a better indication of how much energy bills weigh on local consumers.

Gas prices fell year on year in 12 countries and rose in seven. Bulgaria, Greece and Spain recorded the steepest declines. Romania, Croatia and Slovakia saw the biggest increases.

Sweden had the highest nominal gas price, at €0.22 per kWh. The Netherlands followed at €0.16, while France and Portugal both stood at €0.13. Hungary had the cheapest gas, at €0.03 per kWh. Croatia followed at €0.05, and Romania and Slovakia at €0.06 each.

Measured against purchasing power, Sweden again came out worst, followed by Portugal and the Netherlands. Hungary, Luxembourg and Croatia had the lowest relative costs.

End of crisis measures reshapes energy bills

National price differences also reflect how governments have withdrawn energy crisis measures. Romania scrapped household and business electricity price caps in June 2025, while Poland ended its household cap at the end of that year. Consumers in both countries consequently faced greater exposure to market prices in the first half of 2026.

Other governments retained some form of support, particularly for vulnerable households. The Netherlands, for instance, kept an annual energy tax discount, while Latvia and Portugal continued targeted assistance.

Taxes and levies also account for a larger share of bills than during the energy crisis, when governments cut them to cushion soaring prices. They made up 28.4 per cent of household electricity prices and 32.1 per cent of gas prices in the first half of 2026.

Renewables soften the gas price shock

A country’s energy mix helps explain why electricity prices vary so widely across Europe. Renewables do not automatically guarantee cheaper bills. But they can reduce the impact of volatile gas prices on wholesale electricity markets.

The European Environment Agency (EEA) estimates that gas price volatility added €13 billion to EU wholesale electricity costs during the first 16 weeks of 2026. Renewable generation, by contrast, saved an estimated €29 billion, according to its modelling.

Renewables supplied 44 per cent of EU electricity generation during this period. Their impact varied considerably between countries. Gas set the wholesale electricity price in 66 per cent of hours in Italy and 55 per cent in Czechia. In Spain, the figure was just nine per cent.

These figures concern wholesale markets, not direct savings on household bills. They nevertheless show how a higher share of renewables can make energy systems less vulnerable to fossil fuel price swings.

Geopolitics puts prices back under pressure

Lower retail prices in the first half of 2026 did not bring lasting stability to Europe’s energy markets. Developments in subsequent months have once again shown how quickly geopolitical events can move prices.

According to the EU Agency for the Cooperation of Energy Regulators (ACER), the conflict in the Middle East added an estimated €18 billion to €33 billion to Europe’s gas import bill. Disruptions to Qatari liquefied natural gas supplies through the Strait of Hormuz also intensified competition for LNG between Europe and Asia.

As of 1 November, European gas storage facilities were 74.62 per cent full, below the nine-year average. Europe is therefore heading into winter while competing for supplies on the global market and trying to replenish its reserves. The recent price relief may prove short-lived. Households and businesses across Europe remain exposed to market swings over which they have little control.