Energy Prices in Europe: Latest Trends and Comparisons in 2024

Energy prices in Europe remain volatile due to geopolitical, economic, and environmental factors.

Based on data from a select 22 European countries, sourced from Eurostat and the Household Energy Price Index, GreenMatch has conducted an analysis that found the following.

Electricity prices across Europe have generally decreased compared to the peak levels seen during the 2022 energy crisis but remain higher than pre-crisis levels in many countries. However, the European energy market continues to experience significant fluctuations, with prices showing varied trends across different countries.

For instance, According to Eurostat, the average household electricity price in the EU stood at €0.283 per kWh in the second half of 2023, slightly decreasing from €0.294 per kWh in the first half of 2023. This trend appears to have continued into 2024, with fluctuations depending on the country.

These figures reflect the stabilisation of energy markets since the 2022 crisis. Still, it's important to note that current prices remain approximately 30-40% higher for electricity and 50-70% higher for gas compared to pre-crisis levels in most European countries.

Using data from the International Monetary Fund, we compared the rise in the cost of living based on projects between the UK and other European countries from January 2021 to May 2022. 

Here’s what it revealed about the UK compared to the rest of Europe:

To view our dataset in full, click here. 

The graph below shows how much household energy prices have risen since before the energy crisis. It also displays the increased cost of living in these select countries alongside the energy price increases.

Together, we can see how much the rise in energy prices has impacted the cost of living. 

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The European energy crisis has led to unprecedented increases in energy costs across the continent. Let's examine the situation in the five countries experiencing the steepest rises in energy prices, based on data from Eurostat, Statista, and the Household Energy Price Index (HEPI).

Romania has experienced the most significant increases in both electricity and gas prices among European countries. According to Eurostat data, electricity prices for non-household consumers in Romania were the fourth highest in the EU in the first half of 2022. The energy crisis has severely impacted Romanian industry, with sharp drops in energy-intensive sectors such as chemicals (22.1% decrease) and metalworking (15.1% decrease).

The Romanian government implemented electricity and gas price caps in December 2022, which were significantly higher than those in other EU member states. This has led to concerns about deindustrialisation and the lack of prioritisation for safeguarding Romania's strategic industrial players.

The Netherlands has seen substantial increases in both electricity and gas prices. To mitigate the impact on consumers, the Dutch government introduced a gas, electricity, and district heating price cap scheme in 2023. This scheme set maximum tariffs for consumption up to certain levels: 1,200m3 of gas and 2,900kWh of electricity used in 2023.

Implementing this price cap was complex due to the Dutch system of monthly energy payments based on estimated use, with annual reconciliation. Small and medium-sized enterprises (SMEs) were also included in the price cap scheme, with a special program for energy-intensive SMEs.

Czechia has faced significant energy price increases, particularly impacting its industrial sector. According to the latest data from the Czech Statistical Office, consumer prices in January 2024 showed a month-on-month increase of 2.3%, the lowest since March 2021. The year-on-year price level increase was primarily driven by housing, water, electricity, gas, and other fuels.

However, the Czech government has focused on reducing its reliance on Russian gas, cutting imports from 97% in early 2022 to only 4% by the summer of 2023.

Despite the decreasing overall inflation rate, energy costs remained a significant factor. Natural gas prices dropped by 6.5% year-on-year, while solid fuels decreased by 2.9%. The harmonised index of consumer prices (HICP) for Czechia increased by 2.7% year-on-year in January 2024, down from 7.6% in December 2023.

Lithuania has experienced substantial increases in energy prices, particularly in gas. Lithuania's average wholesale electricity price reached 91.6 euros per megawatt hour in June 2024. Between January 2021 and August 2022, electricity prices in Lithuania grew roughly nine-fold due to the global energy crisis, surpassing 480 euros per megawatt-hour at its peak.

The country's energy market has been significantly impacted by geopolitical factors and its reliance on energy imports. The steep rise in gas prices, in particular, has put pressure on both household consumers and industries.

Austria has seen a notable increase in energy prices, especially in the gas sector. The country's energy market has been affected by broader European trends and specific national factors. While detailed information on Austria's energy crisis in 2024 is limited, the country has likely implemented measures similar to other EU nations to mitigate the impact on consumers and businesses.

The significant increase in gas prices (103%) suggests that Austria, like many European countries, has been particularly affected by disruptions in the natural gas market. These disruptions have had ripple effects across the entire energy sector.

Several factors have contributed to the steep rise in energy costs across these countries:

In the list below, alongside monthly data from the Household Energy Price Index (HEPI), we’ve examined the energy crisis in the 5 countries between 2021 and 2022 with the highest energy price increases compared to pre-crisis levels. These countries experienced record-high energy prices as the European winter sets in. 

Key to these crisis levels are wholesale price increases, which force suppliers to pass on extra costs to consumers, i.e. households. These consistently increasing wholesale prices come from multiple compounding factors since the second half of 2021. Unreliable weather conditions, post-COVID economic recovery, mounting energy insecurity and limited storage supplies in various regions across Europe brought the crisis. 

Since Russia began its war in Ukraine in February 2022, Russia has withdrawn from the European energy market. This accelerated the pre-existing crisis since Russia supplied 45% of gas imports to the EU in 2021, nearly 40% of its total gas consumption, or 155 billion cubic metres.

Without the security of Russian gas, many countries in Europe must rapidly diversify their supply and upscale production from other sources. 

Extremely high energy prices in Estonia result from an over-reliance on volatile wholesale markets. This is due to scarce gas storage across the Baltics, continuous nuclear power plant maintenance, and limited capacity for domestic electricity generation. 

In September 2022, Estonia hit new record high prices for electricity, which rose to €0.59 per kilowatt-hour (KWh), and for natural gas, which rose to €0.38/KWh. From early 2021 to September 2022, electricity and natural gas prices rose 353% and a staggering 773%, respectively. 

Between September and October 2022, electricity and gas prices decreased by 22% and 25%, respectively. This light relief can be attributed to the Estonian government's compensation scheme, which subsidises 80% of price increases above €80/MWh for electricity and gas, available to all households. That said, from the first half of 2021 to October 2022, electricity and gas prices rose 323% and 559%, respectively. 

In October 2022, Estonia’s household gas prices, at €0.29/KWh, were 43% higher than the European average (taken across these 22 sample countries). Household electricity prices, at €0.47/KWh, were 17% higher than this European average. 

The Netherlands have experienced exceptionally high energy price climbs since it relied on Russian imports for nearly 50% of its gross available energy. This over-reliance resulted from slowing domestic gas production attempting to transition from fossil fuels in response to fracking-related earthquakes. 

In October 2022, the Netherlands household prices for electricity were the third highest in Europe at €0.67/KWh, 52% higher than the European average. Household gas prices were the highest in Europe, at €0.42/KWh. This is 78% higher compared to the European average price for gas. 

These prices represent new records for electricity and gas in the Netherlands, first reached in September 2022 with no recorded price change into October. Compared to the first half of 2021, this represented a 421% increase in electricity and a 338% increase in gas. 

The Dutch government introduced a price cap in January 2023, freezing the price of electricity at €0.40/KWh and freezing gas prices at €1.45 per cubic metre. Until then, prices were expected to continue rising, although the government had begun to compensate households with €190 per month until the price cap came into effect. 

Electricity prices in Italy rose 30% between September and October 2022 to the second highest prices for household electricity in Europe, the highest when adjusted to purchasing power standards (PPS), at €0.70 KW/h. Meanwhile, the gas price rose to €0.30/kWh, 97% of the total, to the fourth highest position in Europe (third highest when adjusted to PPS). 

These prices represent new record highs for the country in both cases. Compared to the European average, the electricity and gas prices are 39% and 84% higher, respectively. 

These records come despite various measures by the government to reduce or cut energy-related taxes. However, there have been no measures to cap energy prices in retail or wholesale markets, meaning household prices will rise around 60% in the coming months. 

The HEPI also reported that gas distribution charges in Italy increased in October 2022. Moreover, Russia suspended its gas supply to Italy in October due to operator conflicts with Austria, where the pipeline passes. These latest developments resulted in a 211% increase in the household price of electricity and a 329% increase in the cost of gas since the first half of 2021. 

In October 2022, energy prices for electricity and gas rose 24% to new record highs in Austria, to €0.54/KWh and €0.34/KWh, respectively. The HEPI attributes part of these rises to energy-related tax increases. 

This represents a 145% rise in the cost of electricity compared to pre-crisis levels and a 433% rise in the cost of gas. This results in the third-highest gas prices in Europe (sixth highest when adjusted to PPS). 

Compared to the European average recorded in this study, Austria’s electricity and gas prices sit higher by 39% and 84%, respectively. These increases are reportedly the result of limited market offers and increased supplier rates as they adjust to volatile wholesale prices. 

In response, the Austrian government implemented an electricity price cap at €0.10/KWh for households with an annual consumption of up to 2,900KWh. Anything above this capped price fell under a €0.40/KWh cap.

Electricity prices in Denmark rose to the highest in Europe (fourth highest when adjusted to PPS) to €0.76/KWh. This 15% increase into October 2022 is a new record high for the country. Gas rose only 1% to €0.41/KWh, reaching new records. Therefore, Danish gas prices were the second highest in Europe (fourth highest when adjusted to PPS). 

As well as increases in the volatile wholesale energy market, distribution charges also increased, which helped account for these prices. However, Danish electricity and gas prices were 64% and 75% higher than the European average. 

As such, compared to the first half of 2021, electricity and gas prices had increased 161% and 353% respectively. To combat these rising costs, the Danish government enforced a price cap on surplus heat to €12.50/GJ from January 2023. 

The following table uses data from the International Monetary Fund. It compares key cost of living data between the UK and the European average (25 countries).

Inflation has disproportionately affected low-income households in the UK, with a 3 percentage point higher impact than high-income households. Nearly 50% of UK households reported struggling to pay energy bills in early 2023.

Difference in cost of living between the UK and Europe

Households with the lowest incomes in the UK are disproportionately affected by the cost of living increases. This contrasts those with high incomes in the UK and the European average. These findings are based on projected figures from January 2021 and May 2022.

Part of this is that the UK housing stock is among some of the most poorly insulated across Europe. Research has found that the average UK home will lose heat 5 times faster than buildings in Germany, and the most poorly insulated homes will pay £1,000 more to heat in 2022. 

However, the UK is projected to experience a 5.7% fall in living standards between 2022 and 2024. This data highlights significant economic challenges, though comparable to the rest of Europe. In addition, this decline is noted as the biggest two-year fall since the 1950s for the UK.

Despite receiving only 4% of its gas imports from Russia in 2021, the UK's energy prices are greatly affected by international markets, which provide around 50% of its gas supply. Gas provides heating to nearly 80% of homes in the UK, accounting for 40% of electricity production. 

The UK has continued to experience significant increases in both electricity and gas prices from 2021 to 2024. Meanwhile, the European average for energy prices decreased during this same period. This indicates that the energy crisis has severely affected the UK.

The Energy Price Guarantee was enforced in October 2022 to combat rising wholesale costs. The EPG reduces the cost of electricity and gas per KWh so that the typical UK household pays around £2,500 a year, on average. The scheme ran until April 2022. 

Excluding energy-related taxes and standing charges, the price of electricity and gas in the UK rose 21% and 31%, respectively, under the EPG. Before the EPG, the price of electricity and gas had increased by 62% and 79% compared to the first half of 2021. 

According to the House of Commons Library, households will still be paying significantly more for energy compared to the winter of 2021/2022. This is despite the reduced costs under the Energy Price Guarantee (EPG).

Specifically, electricity bills will be 96% higher than under the previous price cap. Gas bills will increase, costing 141% more than before, including energy-related taxes and standing charges.

This has contributed to a higher cost of living and greater financial pressures on UK households. These pressures are particularly severe for low-income households compared to many of their European counterparts.

The UK's higher energy prices underscore the country's ongoing challenges in managing the cost of living crisis. The disproportionate impact on low-income households further highlights these challenges.

We’ve gathered the following data from select countries across Europe to demonstrate the impacts of the energy crisis and subsequent cost-of-living crisis: 

The information provided in this dataset was sourced and compared from Eurostat, the Household Energy Price Index, and the International Monetary Fund.