Europe – October 31, 2026 -- Switching to dynamic pricing and shifting consumption to cheaper periods could have saved EU households an average of 20%, or about €120, on electricity bills in 2025, according to ACER analysis in its 2026 Monitoring Report on retail energy markets.
Household bills stay elevated after the 2022 crisis
Retail prices rose sharply after the 2022 energy crisis and have not eased. In 2025, EU households spent an average of €840 on electricity and €1,170 on gas. Electricity spending ranges from 1.2% to 3.9% of national median income across the EU, depending on prices, consumption and household income.
Electricity-to-gas price gap blunts the case for electrification
Electricity remains relatively expensive compared with gas, which discourages households from switching to electric technologies. Network charges, taxes and upfront costs often widen the gap further.
Only 7% of EU households are on dynamic price contracts
In nine countries, more than 80% of households hold single fixed-term, fixed-price electricity contracts, limiting their exposure to price signals and potential savings. Smart meter rollout is uneven: 66% of monitored customers have one, but coverage is below 20% in several Member States.
ACER names three priorities as electrification raises demand
Electrification will increase electricity consumption and change when and how consumers use energy. ACER points to three areas:
- Making electrification financially attractive, shaped by retail electricity prices relative to fossil-fuel prices, technology efficiency and upfront investment costs.
- Ensuring network investment delivers value for consumers through efficient planning and use of existing grids, to contain costs as investment rises.
- Improving monitoring of retail contracts, since more complete and comparable data on the contracts consumers choose are needed to judge whether price signals and choices are adequate.