According to the latest data from the EU's statistical office Eurostat and the Household Energy Price Index (HEPI), the cost of electricity in Europe showed significant differences at the start of 2026. For residents of Central Europe, the report's findings were disappointing.
Nominal Cost: Where is Electricity Most Expensive?
As of January 2026, residents of Prague pay approximately 36.4 euro cents per kWh for electricity. The average for the European Union is 25.8 euro cents. Even in Vienna, where the standard of living is traditionally considered high, the rate is lower at 32.9 cents.
In Bratislava, the cost per kilowatt-hour for the population is 20.3 euro cents, and in Budapest, prices remain below 10 cents.
The highest nominal rate in Europe was recorded in Bern, Switzerland, at 38.5 cents, while the cheapest electricity remains in Kyiv at only 8.8 cents per kWh.
Energy Cost Compared to Household Income
However, the numbers on the bills alone do not tell the whole story. The most important indicator is the ratio of energy cost to real household income (purchasing power parity - PPS). After recalculation, the ranking of the most expensive cities changes drastically.
When purchasing power is taken into account, Bucharest ranks first in terms of financial burden (49.0 PPS), followed by Prague (43.5 PPS) and Warsaw (41.4 PPS). This means that despite lower nominal prices compared to Western Europe, residents of Central and Eastern European countries spend a significantly larger portion of their income on utility bills.
At the same time, Bratislava and Ljubljana are below the EU average in terms of household burden. Interestingly, expensive capitals in Northern and Western Europe, such as Oslo or Helsinki, are much more affordable for their residents than cities in the Eastern Bloc, thanks to high citizen incomes.
Kyiv, despite its absolute lead in the ranking of the cheapest rates, turns out to be "more expensive" for its residents after recalculation for purchasing power. Even the minimum cost of energy remains noticeable for Ukrainian budgets due to a significantly lower average income level compared to EU countries.
HEPI analysts note that low purchasing power in Eastern European countries turns even average European tariffs into a heavy financial burden. At the same time, wealthy Western countries, despite the high cost of resources, provide their citizens with less energy vulnerability.
