On average, according to Eurostat, electricity, gas, and other fuels account for 4.6% of total household expenditures.
Electricity and gas prices vary significantly across Europe. When adjusted for purchasing power parity (PPP), the greatest burden on households falls in Central and Eastern European countries.
After Russia's invasion of Ukraine in early 2022, energy prices for households in Europe sharply increased. About a year later, they stabilized, but according to the Household Energy Price Index (HEPI), they still remain above pre-crisis levels.
Energy costs are particularly critical for low-income households, which spend a larger share of their budget on them. On average, according to Eurostat, electricity, gas, and other fuels account for 4.6% of total household expenditures in the EU.
According to HEPI, compiled by Energie-Control Austria, MEKH, and VaasaETT, prices vary greatly across Europe.
So which European capitals are paying the most for electricity and gas today, and which are paying the least, as of early 2026?
Starting January 2, 2026, retail electricity prices for residential consumers ranged from 8.8 c€/kWh in Kyiv to 38.5 c€/kWh in Bern, while the average across the EU was 25.8 c€/kWh.
Berlin (38.4), Brussels (36.5), Dublin (36.5), London (36.4), and Prague (36.4) were among the most expensive cities for household electricity prices.
Besides Kyiv, the lowest rates for households are offered by Budapest (9.6), Podgorica (11.1), and Belgrade (11.6).
Overall, in the capitals of Central and Eastern European countries, except for Prague, electricity is cheaper.
In the capitals of the five largest economies in Europe, electricity prices regularly exceed the EU average, and January 2026 was no exception.
Why Do Electricity Prices Vary?
Key factors in inter-country differences include the characteristics of national markets. HEPI representatives point to differences in energy balances — the degree of dependence on natural gas or renewable sources — as well as procurement specifics, pricing strategies of suppliers, and cross-subsidization.
Taxes and energy distribution costs also matter. They can significantly affect rankings and final prices, as seen in the case of the German capital.
Rankings Change When Adjusted for Purchasing Power
When adjusting prices for purchasing power standards (PPS), the rankings for electricity change significantly. PPS is a hypothetical currency that eliminates differences in the overall price level and provides a more accurate comparison.
When adjusted for PPS, electricity prices range from 10.9 in Oslo to 49 in Bucharest.
Among the most notable changes is Bern, which dropped from the top spot in euro prices to 22nd place when adjusted for PPS. Luxembourg fell from 17th place in euro prices to 26th in PPS, Bucharest rose from 11th place in euros to first place in PPS, and Riga climbed from 14th place in euros to fifth in PPS.
These shifts show that in many capitals of Eastern Europe, nominal electricity prices are lower, but due to lower purchasing power, the burden on households is higher.
Conversely, cities in Western and Northern Europe may appear expensive in nominal terms, but when adjusted for PPS, they become relatively more affordable.
Stockholm Among the Most Expensive
In January 2026, retail prices for natural gas for households ranged from 1.6 c€/kWh in Kyiv to 35 c€/kWh in Stockholm. Within the EU, the price in Stockholm was more than 13 times higher than in Budapest, where gas cost 2.6 c€/kWh.
Amsterdam ranks second with 17.4 c€/kWh. This means that gas in Stockholm is twice as expensive as the nearest "competitor" in the ranking.
The HEPI report links this to the characteristics of Sweden's gas market. The country has only about 77,000 household gas consumers, around 50,000 of whom are connected to an isolated gas distribution network in Stockholm.
Bern (15.8), Lisbon (13.8), Rome (13.6), Paris (12.8), Vienna (12.7), Dublin (11.7), and Prague (10.7) are among the more expensive cities: gas costs more than the EU average of 10.6 c€/kWh.
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