of national median household income was spent on electricity in 2025.
European retail markets for electricity and gas
2026 Monitoring Report
The 2026 Monitoring Report on retail energy markets examines electricity bills, affordability and what the shift to electrification means for consumers. Growing differences between lower- and higher-priced hours can create saving opportunities, but the benefits depend on consumers’ contracts, consumption patterns and the ability to shift electricity use.
The report looks at whether retail market conditions in Europe support affordable electrification and enable consumers to benefit from more flexible electricity use. A key issue is which electricity contracts consumers are actually on, and what price signals they receive as a result. Going forward, better contract monitoring will enable ACER and regulators to assess retail market impacts on consumers, flexibility potential and, over time, contract and innovation in contracts and services.
What trends did the monitoring find?
Household retail prices rose sharply after the 2022 energy crisis and have remained elevated, with gas still nearly 70% more expensive than before the crisis. In 2025, EU households spent an average of €840 on electricity and €1,170 on gas.
Energy affordability varies widely across the EU. Affordability depends on income and consumption, not unit prices alone. In 2025, household electricity expenditure ranged from 1.2% to 3.9% of national median income, reflecting differences in prices, consumption and household income.
High electricity-to-gas price ratios can weaken the incentive to electrify. Electricity remains relatively expensive compared to gas, discouraging households from switching to electric technologies, even when these are more efficient. Network charges, taxes and upfront costs often widen this price gap further.
Most consumers are not exposed to the price signals that could unlock flexibility. 7% of EU households are on dynamic price contracts, while over 80% in nine countries are on single fixed-term, fixed-price electricity contracts. Smart meter rollout is also uneven across Member States: 66% of monitored customers have a smart meter, but coverage remains below 20% in several countries.
ACER analysis shows that switching to dynamic pricing and shifting consumption to lower-price periods could have saved households an average of 20% (around €120) on their electricity bills in 2025.
Better contract monitoring is needed to assess consumer outcomes. More complete and comparable contract data are key to assessing market impacts on European consumers.
Looking ahead
Electrification will increase electricity consumption and change when and how consumers use energy. Retail markets therefore play an increasingly important role in determining whether consumers can benefit from greater electrification.
Three areas will be particularly relevant for Member States and regulators:
Making electrification financially attractive. Retail electricity prices relative to fossil-fuel prices, technology efficiency and upfront investment costs will shape incentives to electrify. What matters is total spending (price times the quantity consumed), not just the unit cost of electricity versus fossil fuels.
Ensuring growing network investment delivers value for consumers. Efficient planning and use of existing grids will help contain costs and protect electricity affordability, as the network cost part of the bill is expected to grow with network investment.
Enhancing monitoring of energy retail contracts to understand consumer choice. Better and more comparable information on the contracts consumers actually choose will be needed to understand whether appropriate price signals and choices are available as consumption patterns change.
European retail markets for electricity and gas
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Highlights
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1.2% - 3.9%
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20%
potential savings on electricity bills from dynamic pricing and shifting consumption to lower-price periods (~€120/year).
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>80%
of household consumers in nine countries are on fixed-term, fixed-price contracts.
Report
ACER & CEER’s 2026 Monitoring Report on European retail markets for electricity and gas:
analyses household electricity and gas prices, bills and affordability;
assesses the conditions affecting whether consumers can benefit financially from electrification; and
examines retail-contract monitoring and the potential savings from more flexible electricity consumption.
Infographic
Interested in the main highlights of the report?
Dashboards
ACER's retail energy markets dashboard and retail pricing dashboard complement the 2026 report with country-level data on EU retail electricity and gas markets.
These dashboards allow users to explore:
monthly retail price developments across the EU for both electricity and gas;
retail electricity and gas prices and bill components;
market structure and consumer indicators; and
developments related to energy consumption and the energy transition.
Additional information
- Access the underlying datasets.