Households across Europe face renewed pressure on their energy bills this winter as wholesale gas prices climb and storage reserves fall to unusually low levels. New figures show that London remains among the continent’s most expensive capitals for electricity, although domestic gas prices in the UK are comparatively lower than in several major European economies.
European Gas Prices Reach Nearly Four-Year High Ahead of Winter
European natural gas prices rose to their highest level in almost four years on Tuesday, raising concerns about the cost of heating homes during the colder months.
Dutch TTF benchmark gas futures reached €87.20 per megawatt-hour, compared with approximately €32 before the outbreak of the Iran war.
The conflict has disrupted shipping through the Strait of Hormuz, a strategically important route that normally handles around one-fifth of global liquefied natural gas supplies.
Despite the sharp increase in wholesale energy costs, household electricity and gas tariffs have risen more gradually than petrol and diesel prices.
According to the European Commission’s Weekly Oil Bulletin, average diesel prices across the European Union increased by 35% between 23 February and 5 October 2026, while petrol prices rose by 23%.
Figures from the Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH and VaasaETT, show that residential gas prices across EU capitals increased by an average of 12% between February and September. Electricity prices rose by 4.2% over the same period.
London Among Europe’s Five Most Expensive Capitals for Electricity
Electricity prices vary considerably across European cities, reflecting differences in energy markets, taxation, infrastructure and government support.
In September 2026, household electricity prices, including taxes, ranged from 8.4 euro cents per kilowatt-hour (kWh) in Kyiv to 41.3 cents in Brussels.
The average across EU capitals stood at 27.2 cents per kWh.
London Electricity Prices Exceed EU Average
Brussels recorded Europe’s highest residential electricity prices, followed by Berlin at 39.6 cents per kWh, Dublin at 38.7 cents and Bern at 38.6 cents.
London ranked fifth, with electricity costing 38.3 cents per kWh.
Other expensive capitals included Rome at 36.6 cents, Vienna at 34.4 cents and Prague at 34.3 cents.
At the opposite end, Budapest recorded electricity prices of 10.3 cents per kWh, followed by Podgorica at 11.3 cents, Belgrade at 11.6 cents and Valletta at 12.3 cents.
Madrid and Paris were comparatively less expensive, at 28.3 cents and 28.1 cents respectively, although both exceeded the EU average.
Purchasing Power Changes Europe’s Energy Price Rankings
Comparing electricity prices in euros does not fully reflect affordability because household incomes and living costs differ significantly between countries.
When adjusted using purchasing power standards (PPS), Bucharest becomes Europe’s most expensive capital for electricity, with a reading of 55.1.
Oslo becomes the cheapest at 11.5.
Among the capitals of Europe’s five largest economies, Rome ranks highest at 38.2, followed by Berlin at 35.5, Madrid at 31.6 and London at 30.9.
Paris records the lowest figure among these cities at 25.8, below the EU average of 29.6.
The adjustment produces substantial changes elsewhere. Bucharest and Warsaw each climb 10 places, while Bern falls 20 positions and Copenhagen drops 13.
Stockholm Has Europe’s Highest Household Gas Prices
Residential natural gas prices also differ substantially across European capitals.
Stockholm recorded the highest price in September at 34.8 euro cents per kWh, considerably above Amsterdam’s 21.2 cents.
Kyiv had the lowest price at 1.5 cents per kWh, while the EU capital-city average was 11.9 cents.
UK Gas Prices Remain Comparatively Competitive
Among Europe’s five largest economies, Paris recorded the highest household gas price at 15.7 cents per kWh, followed by Rome at 15.2 cents and Berlin at 12.5 cents.
London’s price stood at 10.3 cents per kWh, slightly above Madrid’s 10.1 cents.
After adjusting for purchasing power, London becomes the least expensive of these five capitals for gas, with a PPS reading of 8.3.
Rome remains the most expensive at 15.9, followed by Paris at 14.4.
Across the wider European comparison, Stockholm retains the highest purchasing-power-adjusted gas price at 28.5, while Budapest records the lowest at 3.6.
These differences demonstrate why households can face relatively expensive electricity but comparatively affordable gas, as is the case in London.
Gas Prices in London Rise 28.2% Since February
Energy prices have changed considerably since before the escalation of the Middle East conflict.
Between February and September 2026, Lisbon recorded the largest electricity price increase at 22%, followed by Amsterdam at 17.3%, Madrid at 15.1% and Rome at 14.9%.
Luxembourg City experienced the largest reduction, at 15.3%.
Gas prices rose particularly sharply in Tallinn, increasing by 59.2%, from 7.8 to 12.4 cents per kWh.
Other substantial increases included Brussels at 37.9%, Athens at 33.1%, Bern at 30.2% and London at 28.2%.
Paris and Berlin also recorded increases exceeding 20%.
What Rising European Gas Prices Mean for UK Winter Energy Bills
The latest wholesale gas price increases may not yet be fully reflected in household tariffs because fixed-price agreements, regulatory arrangements and government measures can delay their impact.
In Britain, changes in wholesale costs can influence future domestic energy tariffs, although the effect depends on suppliers’ purchasing arrangements and the applicable Ofgem price cap.
European gas storage levels are another concern.
According to the Institute for Energy Economics and Financial Analysis (IEEFA), EU gas storage facilities were 72.4% full on 3 October, their lowest level for that date since records began in 2011.
The institute warned that reduced reserves could leave Europe particularly vulnerable to a prolonged cold spell towards the end of winter.
For UK households, the eventual cost of winter energy will depend on tariff arrangements, wholesale market developments and consumption as temperatures fall. Although London remains relatively competitive for gas compared with other major European capitals, its high electricity prices underline the continuing financial pressure facing consumers.
Thomas Hardy is a contributor to OE Mag, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, accurate reporting and useful information that helps readers stay informed about current affairs and developments that matter to them. His work highlights relevant stories, emerging trends, and key issues, presenting them in a balanced, accessible, and reader-friendly way.