Electricity and Gas Prices in Europe: The Most Expensive and Cheapest Cities in 2026
Electricity and gas prices are very different across Europe. Some cities pay much more for energy, while others pay far less. When prices are adjusted for income levels, households in Central and Eastern Europe often feel a bigger financial burden than those in Western Europe.
Energy prices across Europe increased sharply after Russia invaded Ukraine in early 2022. Prices later became more stable, around one year after the crisis began. However, they are still higher than they were before the war. This information comes from the Household Energy Price Index (HEPI).
Energy costs are especially important for low-income households. Poorer families spend a larger share of their income on electricity, gas, and other fuels. On average, households in the European Union spend about 4.6% of their total budget on energy, according to Eurostat.
The HEPI data, collected by Energie-Control Austria, MEKH, and VaasaETT, shows big price differences between European cities. These differences raise an important question: which capital cities in Europe have the most expensive energy prices, and which are the cheapest, in early 2026?
Electricity Prices Across European Cities
As of 2 January 2026, household electricity prices ranged widely across Europe. The cheapest electricity was found in Kyiv, at just 8.8 euro cents per kilowatt-hour (c€/kWh). The most expensive electricity was in Bern, where households paid 38.5 c€/kWh. The EU average electricity price was 25.8 c€/kWh.
Several major cities were among the most expensive for electricity. Berlin charged 38.4 c€/kWh. Brussels and Dublin both had prices of 36.5 c€/kWh. London followed closely at 36.4 c€/kWh, the same price as Prague.
On the other hand, some cities offered much cheaper electricity. After Kyiv, Budapest was one of the cheapest at 9.6 c€/kWh. Podgorica charged 11.1 c€/kWh, and Belgrade had prices of 11.6 c€/kWh.
In general, electricity prices are lower in Central and Eastern European capitals, with one major exception: Prague. In contrast, the capitals of Europe’s five largest economies often have electricity prices above the EU average. This trend continued in January 2026.
Why Electricity Prices Are Different
There are several reasons why electricity prices vary so much between countries and cities.
One key reason is the energy mix. Some countries rely more on natural gas, while others use more renewable energy like wind or solar power. Countries that depend heavily on imported gas often face higher prices.
Another reason is how energy companies buy and sell electricity. Procurement methods, pricing strategies, and government policies all affect final prices paid by households.
Taxes and distribution costs also play a big role. In some countries, high taxes can push prices much higher. This is especially clear in cities like Berlin, where taxes and grid costs make electricity more expensive than in many other European capitals.
Electricity Prices Adjusted for Purchasing Power (PPS)
Looking only at euro prices does not tell the full story. To better understand affordability, prices are also adjusted using Purchasing Power Standards (PPS). PPS is an artificial unit that removes differences in income and overall price levels between countries.
When electricity prices are adjusted for PPS, rankings change a lot. In PPS terms, electricity prices range from 10.9 in Oslo to 49 in Bucharest.
Some cities move significantly in the rankings. Bern, which was the most expensive in euro terms, drops to 22nd place in PPS terms. Luxembourg City falls from 17th place to 26th.
In contrast, Bucharest moves from 11th place in euro prices to the most expensive city in PPS terms. Riga also rises sharply, from 14th place to fifth.
These changes show that even though electricity prices in Eastern European cities are lower in euros, lower incomes make electricity harder to afford. For many households in these regions, energy costs take up a larger share of their income.
On the other hand, cities in Western and Northern Europe may look expensive at first. But once higher incomes are taken into account, electricity becomes more affordable for many households there.
Natural Gas Prices in European Cities
Gas prices also vary widely across Europe. In January 2026, residential gas prices ranged from 1.6 c€/kWh in Kyiv to 35 c€/kWh in Stockholm.
Stockholm had the highest gas prices in Europe. Within the EU, its price was more than 13 times higher than in Budapest, where gas cost only 2.6 c€/kWh.
Amsterdam was the second most expensive city, with gas prices at 17.4 c€/kWh. This means gas in Stockholm was about twice as expensive as in Amsterdam.
According to HEPI, Sweden’s gas market structure explains part of this difference. Sweden has only about 77,000 household gas users in total. Around 50,000 of them live in Stockholm and are connected to a small, isolated gas network. This makes gas supply more costly.
Other Expensive Cities for Gas
Several other major cities also had gas prices above the EU average of 10.6 c€/kWh. These include:
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Bern: 15.8 c€/kWh
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Lisbon: 13.8 c€/kWh
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Rome: 13.6 c€/kWh
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Paris: 12.8 c€/kWh
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Vienna: 12.7 c€/kWh
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Dublin: 11.7 c€/kWh
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Prague: 10.7 c€/kWh
HEPI explains that gas price differences are influenced by many factors. These include how energy is bought and priced, local weather conditions, gas storage levels, and how well markets are connected across borders. Government subsidies and tariff structures also affect prices.
Gas Prices in PPS Terms
When gas prices are adjusted for purchasing power, differences again become clearer. In PPS terms, gas prices range from 3.6 in Budapest to 28.5 in Stockholm. Even after adjusting for income, Stockholm remains the most expensive city for residential gas.
Many cities change position when switching from euro prices to PPS. Bern falls from third place in euro prices to sixth place in PPS. Luxembourg drops from 13th to 24th. Berlin moves from 11th to 18th.
Meanwhile, Sofia rises from 15th place in euro prices to fifth in PPS. Vilnius moves from 17th to 11th, and Bucharest rises from 23rd to 17th.
What the PPS Adjustment Shows
The PPS adjustment reveals an important reality. Cities with low gas prices in euros often become some of the most expensive places once income levels are considered. This means households in poorer countries may struggle more with energy costs, even if prices look cheap at first glance.
In contrast, Western and Northern European capitals often appear expensive in euro terms. But because incomes are higher, energy costs are more affordable compared to household earnings.
Overall, energy prices across Europe tell a complex story. Nominal prices matter, but affordability depends just as much on income and purchasing power. In 2026, this gap remains a key challenge for many European households, especially in Central and Eastern Europe.
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