Electricity and gas prices vary widely across Europe, with households in Central and Eastern Europe facing a disproportionately heavy burden when adjusted for purchasing power, according to the Household Energy Price Index (HEPI).
Residential energy costs surged across the continent following Russia’s invasion of Ukraine in early 2022. While prices stabilised around a year later, they remain above pre-crisis levels. On average, electricity, gas, and other fuels account for 4.6% of total household spending in the European Union, Eurostat data show, with low-income families affected most.
In January 2026, residential electricity prices ranged from 8.8 cents per kilowatt-hour in Kyiv to 38.5 cents in Bern, with the EU average at 25.8 cents. Western European capitals, including Berlin (38.4), Brussels (36.5), Dublin (36.5), London (36.4) and Prague (36.4), ranked among the most expensive for electricity. In contrast, Budapest (9.6), Podgorica (11.1), and Belgrade (11.6) offered the lowest rates, highlighting a pattern of lower nominal electricity prices in Central and Eastern Europe, except for Prague.
HEPI analysts attribute the differences to national energy mixes, taxation, procurement strategies, and distribution costs. Cities with higher reliance on renewables or complex grid networks often see higher nominal prices, while procurement and cross-subsidisation also play a key role.
When adjusted for purchasing power standards (PPS), the picture changes significantly. Bern dropped from the most expensive in euro terms to 22nd in PPS, while Bucharest moved from 11th in euros to the highest rank in PPS. Riga rose from 14th to fifth. “While many Eastern European capitals have lower headline electricity prices, weaker purchasing power makes energy a heavier burden for households,” the report notes. Western and Northern European cities often appear more expensive in euros but relatively affordable in PPS terms.
Gas prices show similar disparities. Residential gas ranged from 1.6 cents per kilowatt-hour in Kyiv to 35 cents in Stockholm, more than 13 times higher than Budapest’s 2.6 cents. Amsterdam ranked second at 17.4 cents. Stockholm’s high prices reflect Sweden’s small gas market, with only about 77,000 households nationwide, including 50,000 in the isolated Stockholm network.
Other expensive cities included Bern (15.8), Lisbon (13.8), Rome (13.6), Paris (12.8), Vienna (12.7), Dublin (11.7), and Prague (10.7), compared with the EU average of 10.6 cents. PPS adjustments again reshuffled rankings: Stockholm remained the most expensive, while Budapest, Sofia, Vilnius, and Bucharest saw significant jumps relative to euro prices.
The report highlights that cities with low nominal gas prices often impose a heavier burden on households when income levels are considered, while Western and Northern capitals can be relatively more affordable.
