As winter tightens its grip, demand for heating is surging across the continent. But the cost of keeping homes warm remains far from uniform.
Russia’s invasion of Ukraine continues to cast a long shadow over European energy markets, while differences in national policies, energy mixes and tariff systems have widened the gap between the cheapest and most expensive countries.
Electricity is cheapest in Turkey, priciest in Germany
In the first half of 2025, electricity prices for households ranged from €6.2 per 100 kWh in Turkey to €38.4 in Germany, Eurostat figures show. The average for the 38 European countries, including EU members, candidate nations and EFTA states, stood at €28.7.
Western Europe recorded the highest nominal prices, with Belgium (€35.7) and Denmark (€34.9) close behind Germany. Prices also exceeded €30 in Italy, Ireland and Czechia.
By contrast, most Eastern European and EU candidate countries reported far lower rates.
Electricity cost under €10 per 100 kWh in Turkey, Georgia, Kosovo, Bosnia and Herzegovina, and Montenegro.
Among EU members, Hungary (€10.4) had the lowest electricity price, while Spain (€26.1) and France (€26.6) remained below the EU average.
Experts at consultancy VaasaETT said the differences reflect factors such as national energy mixes, supplier strategies, cross-subsidies and tariff structures.
Experts from VaasaETT explained that differences in nominal residential electricity prices come from several market-specific factors. These include variations in energy generation mix, supplier procurement and pricing strategies, cross-subsidisation, and tariff structures.
Purchasing power narrows price gaps
When adjusted for purchasing power standards (PPS)—a measure that accounts for local incomes and costs of living—the gap between countries becomes smaller.
A euro doesn’t stretch equally across Europe: €1,000 might cover a month’s rent in Germany but two or three in Bulgaria. So while incomes may seem lower in euros, adjusting for what money can actually buy narrows the gap.
In terms of electricity and gas prices, it ranges from 12.8 PPS in Iceland to 39.2 PPS in Czechia, followed by Poland (35 PPS). Italy and Germany also ranked among the top five, each exceeding 34 PPS.
At the lower end were Malta (13.7 PPS), Turkey (14 PPS) and Hungary (15 PPS). Nordic countries, particularly Norway (16 PPS) and Finland (18.7 PPS), enjoy cheaper adjusted electricity, with Sweden also below the EU average of 28.6 PPS.
Electricity prices stayed relatively stable in many countries, with changes of less than 10% between the first halves of 2024 and 2025. However, some nations saw significant shifts in national currencies. Moldova and Turkey stood out with increases of more than 50%.
Within the EU, Luxembourg and Ireland recorded notable rises of over 25%. On the other hand, Slovenia, Finland and Cyprus saw the largest declines, each exceeding 9% in absolute terms.
Gas prices: Sweden highest, Georgia lowest
Household natural gas prices 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.
Different procurement and pricing strategies, the storage levels, temperature and weather conditions, the interconnection with other markets, cross-subsidisation and the tariff mix play significant roles in the gas price disparities according to VaasaETT experts.
PPS-adjusted gas prices tell a different story
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 Czechia (10.9%) recording declines of more than 10% in absolute terms.
