ACER has updated its data dashboard, which tracks monthly changes in household energy prices across EU Member States and Norway from January 2019 to December 2024.

The dashboard provides valuable insights for policymakers, consumer protection groups, and EU citizens by highlighting trends in end-user electricity and gas prices, supporting informed decisions on energy affordability and system costs.

What are the key findings?

Electricity prices: In 2024, household electricity prices decreased by 5% compared to 2023. This was mainly due to a 17% fall in the energy component of prices. However, this decline was partially offset by higher network costs and the phasing out of certain subsidies. In Q4, prices and their composition remained steady, showing no significant changes compared to the previous quarter.

Gas prices: Similarly, household gas prices fell by an average of 7% in 2024, driven by the 20% drop in the energy component. Removal of subsidies contributed to a rise in the tax component, partially offsetting the decrease. In the last quarter, the average end-user gas prices slightly increased.

What lies ahead?

The drop in energy costs reflects the impact of Europe's growing use of renewable energy. However, as renewable energy generation expands, there will be a need for substantial investment in energy infrastructure, which could lead to higher network costs in the future.

The European Commission’s upcoming Action Plan on Energy Affordability will be key in addressing these challenges. The current trends highlight the importance of looking at the overall costs of the energy system (including network and infrastructure expenses), rather than focusing solely on commodity costs.

ACER will continue updating the dashboard quarterly to monitor the developments in energy affordability for European consumers.

For the first time, ACER publishes its Country Sheets to present key metrics on retail electricity markets across EU Member States and Norway. These short 1-pagers provide insights into:

• key market facts;
• consumer trends, including contract uptake and bill breakdown;
• national progress towards 2030’s decarbonisation targets, showing status of electric vehicles’ (EVs') uptake, EV’s charging stations, the installation of heat pumps and the share of final renewable energy consumption;
• a high-level SWOT analysis to show strengths, weaknesses, opportunities and threats of each market.  

What are the key findings? 

ACER finds that demand-side flexibility remains limited: the majority of consumers in most countries are on fixed-price contracts, hindering their active participation in electricity markets.

This is despite in many cases, the access to smart metering should enable the provision and uptake of more flexible contracts for both household and non-household consumers.

ACER’s Country Sheets complement the annual Retail Market Monitoring Report and accompanying retail (electricity and gas) data dashboard.

The EU’s drive towards carbon neutrality by 2050 requires swift changes. Today’s ACER-CEER 2024 Market Monitoring Report on energy retail and consumer protection emphasises that the clean energy transition will not occur without power system flexibility and the active participation of energy consumers.

Which key challenges did the report identify?

• Slow smart meter adoption
• Increased price volatility
• Fixed contracts dominate
• Member States price interventions hinder flexibility

What are the key recommendations of the energy regulators’ report?

Retail markets can play a pivotal role as providers of flexibility. Unlocking more flexible retail consumption is crucial for the energy transition's success. It also creates opportunities for consumers to benefit from lower energy prices.

The report calls on regulatory authorities and Member States to prioritise demand-side response frameworks, incentivise efficient grid use, and accelerate the rollout of smart meters. Dynamic pricing and flexible contracts are key to empowering consumers.

To unlock greater flexibility in retail energy markets, the report calls for:

• The regulatory framework to be updated to promote demand-side response while balancing household consumer protection.
• Incentives to optimise efficient grid usage.
• Faster smart meter rollout.
• Empowering consumers through more flexible contract options. Additionally, raising consumer awareness and providing incentives for flexible energy consumption are key to driving the energy transition.

ACER's monitoring shows a gradual decrease in EU household energy prices

Average EU energy prices stabilised in 2024 after a major decrease the previous year, although they remain higher than pre-crisis levels. Retail price variations depend on contract types. Member States with more fixed-rate contracts saw slower reductions, leading to higher consumer costs compared to those with dynamic contracts.

To help track these trends, ACER has released a dashboard that shows the monthly changes in electricity and gas prices, including components like energy, network charges, and taxes across Member States from January 2019 to August 2024.

Get involved!

ACER and CEER will hold a webinar to present the report’s main findings and recommendations (Monday, 7 October 2024 at 14:00 CET). Register (for free) here.

Read more.

Explore the infographic.

ACER and the Council of European Energy Regulators (CEER) publish today their Energy Retail and Consumer Protection 2023 Market Monitoring Report (MMR).

On annual basis, ACER and CEER monitor the European internal energy markets of electricity and natural gas. 2022 was an unprecedented year for EU energy consumers and retail markets, as the post-pandemic recovery and Russia’s invasion to Ukraine caused wholesale energy prices to spike, which then heavily impacted consumers’ bills.

Against this background, this year’s energy retail and consumer protection MMR (based on 2022 data) looks at:

• The number of measures implemented in EU Member States as a response to the energy crisis, the budget allocated for financial support to consumers and how this evolved during the year in different countries.
• The status of retail energy markets across Europe.
• The European energy consumption and energy retail price patterns over 2022.
• The level of consumer information provided via energy bills and the number of consumer complaints handled during 2022.
• The level of consumer protection and engagement (including how the role of consumer and the definition of energy poverty changed) across Europe.

What are the main findings?

• In most Member States, retail electricity and gas prices rose significantly in response to wholesale price spikes. Despite the recent (2023) wholesale electricity prices reductions, end-user prices are falling at slower rates.  
  During the crisis, governments in each Member State stepped in to support their residential and industrial consumers. Such support comes at a cost to national budgets. An important lesson from 2022 is the need to further target support measures (if needed) and to incentivise cutting energy consumption.
• The crisis triggered demand reductions, particularly among industrial customers. On the contrary, energy demand in the household sector was not highly affected by the energy crisis.
• While in some Member States the uptake for fixed price contracts increased (compared to 2021), in others, customers switched to a variable price or other type of price contracts.
• The number of consumer complaints increased during the 2022 crisis.
• Thirteen Member States have successfully rolled out smart meters, while five countries have not yet started the roll-out. Hence not all consumers have the same opportunities to actively engage in energy markets.
• Consumer bills and comparison tools fail to meet the criteria as set out in EU laws. High-quality tools are needed for consumers’ informed choices.
• Practice shows that electricity household consumers are willing to reduce peak-time usage. 

The report also provides a series of recommendations, including:

• A list of possible targeted support measures that Member States could opt for in the future.
• The need to enhance monitoring and simplify access to information, so consumers can be more engaged, even in rapidly evolving market situations.
• The requirement for comparison tools covering the entire market to meet the standards set by EU law. It is key that consumers are able to understand their bills and are in a position to take informed decisions about their energy consumptions.

Would you like to find out more?

Access the 2023 energy retail and consumer protection market monitoring report.

Check out the MMR publications and energy market data from previous years.

Access the report's infographic.

What’s next?

Join our ACER-CEER webinar: Monitoring energy retail markets and consumer protection on Thursday, 14 September 2023. You will learn more about the report’s findings and can interact with our experts!