In fact, only in Finland and Sweden is electricity twice as expensive as gas. However, the European Commission’s Electrification Action Plan, drawing on EHPA data, shows that Member States with the lowest electricity-to-gas price ratios record three times as many heat pump sales as those where the ratio exceeds three.
The Commission has therefore set a clear target: by 2030, reduce national electricity-to-gas price ratios to a maximum of 2.5 for households and 2.0 for industry. Around half of a household electricity bill reflects the cost of electricity itself, while the remainder consists of taxes, levies and network charges.
In many Member States, electricity is taxed more heavily than fossil gas, while fossil fuel subsidies continue to keep gas prices artificially low. This weakens the economic case for heat pumps and other electrification technologies. The Electrification Action Plan addresses this imbalance from several angles.
Alongside the Plan, the Commission is proposing legislation on future-proof electricity bills, including reforms to electricity taxation and network charges to better support electrification. It also commits to phasing out fossil fuel subsidies as part of the post-2030 Energy Union package. For EHPA, this is a major step forward.
Improving the electricity-to-gas price ratio has long been one of the Association’s key policy recommendations, as it creates a level playing field between clean electricity and fossil fuels. The Commission has recognised the problem and proposed the right direction. The next challenge is implementation.
