Consumer Affordability

ACER: Dynamic Pricing Could Have Cut EU Power Bills 20% in 2025

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ACER: Dynamic Pricing Could Have Cut EU Power Bills 20% in 2025

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.