Electricity and gas prices vary significantly across Europe. When adjusted for PPS, country rankings show a heavier burden on households in Central and Eastern Europe.
Residential energy prices in Europe surged after Russia’s invasion of Ukraine in early 2022. They stabilised about a year later but remain above pre-crisis levels according to the Household Energy Price Index (HEPI).
Energy costs matter most for low-income households, which spend a larger share of their budget on those expenses. On average, electricity, gas and other fuels account for 4.6% of total household spending in the EU, according to Eurostat.
Prices vary significantly across Europe according to HEPI, as compiled by Energie-Control Austria, MEKH and VaasaETT.
So which European capital cities have the most expensive — and the cheapest — electricity and gas prices as of early 2026?
Beginning on 2 January 2026, residential end-user electricity prices ranged from 8.8 c€/kWh in Kyiv to 38.5 c€/kWh in Bern, while the EU average stood at 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.
In addition to Kyiv, Budapest (9.6), Podgorica (11.1), Belgrade (11.6) offer the cheapest electricity prices for households.
Electricity prices are generally lower in Central and Eastern European capital cities, apart from Prague.
Electricity prices regularly exceed the EU average in the capital cities of Europe’s five largest economies, and this was also the case in January 2026.
Why the differences in electricity prices?
Market-specific factors play a key role in these country differences. HEPI representatives point to variations in energy mixes — such as reliance on natural gas or renewables — as well as supplier procurement, pricing strategies and cross-subsidisation.
Taxes and distribution costs also matter. These can strongly affect rankings and prices, as seen in the case of Germany’s capital.
Rankings change in purchasing power terms
When adjusted for purchasing power standards (PPS), electricity price rankings shift significantly. As an artificial currency unit, PPS removes general price level differences and offers a fairer comparison.
In PPS terms, electricity prices range from 10.9 in Oslo to 49 in Bucharest.
The most significant ranking changes include Bern, which dropped from the top spot as the most expensive in euro terms to 22rd in PPS. Luxembourg City dropped from 17th in euro terms to 26th in PPS, Bucharest moved up from 11th in euro terms to the number one spot in PPS and Riga moved up from 14th in euro terms to fifth in PPS
These shifts show that while many Eastern European capitals have lower nominal electricity prices, weaker purchasing power makes electricity a heavier burden for households.
In contrast, Western and Northern European cities may look expensive in nominal terms but become relatively more affordable in PPS terms.
Stockholm’s among the highest
In January 2026, residential end-user natural gas prices ranged from 1.6 c€/kWh in Kyiv to 35 c€/kWh in Stockholm. Within the EU, Stockholm’s price was more than 13 times higher than in Budapest, where gas cost 2.6 c€/kWh.
Amsterdam ranks second at 17.4 c€/kWh. This shows that Stockholm’s gas prices are double those of its runner-up on the list.
The HEPI report links this to the structure of Sweden’s gas market. Sweden has only about 77,000 household gas customers nationwide, around 50,000 of whom are connected to the isolated gas 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, with gas prices above the EU average of 10.6 c€/kWh.
According to HEPI, price differences are shaped by factors such as procurement and pricing strategies, weather and temperature conditions, storage levels, market interconnections, cross-subsidisation and the tariff mix.
In PPS terms, the Swedish capital still is the most expensive for residential gas prices. It ranges from 3.6 in Budapest to 28.5 in Stockholm.
Price rankings in euro and PPS differ significantly in several countries. The most notable cases include Bern, which dropped from third in euro prices to sixth in PPS, Luxembourg dropped from 13th in euro prices to 24th in PPS, Berlin dropped from 11th in euro prices to 18th in PPS.
Sofia moved up from 15th in EUR to fifth in PPS, Vilnius moved up from 17th in euro prices to 11th in PPS, while Bucharest moved up from 23rd in euro prices to 17th in PPS.
The PPS adjustment indicates that cities with lower headline gas prices often rank among the most expensive once income levels are taken into account, while high-price Western and Northern capitals frequently appear more affordable in relative terms.
Budapest and Stockholm are significant exceptions to this trend.
