Brussels, 15th July 2026 – Electrification is Europe’s pathway to climate neutrality, energy security and independence from fossil fuel imports – but it will only succeed if electricity is more affordable than fossil fuels.
Our new collaborative report examines seven national contexts and how structural changes and policy choices create artificial barriers that further undermine electricity competitiveness. This report comes as the Commission is about to adopt its Electrification Action Plan and a legal proposal addressing network charges and electricity taxation.
“Lowering electricity prices is like removing the handbrake from Europe’s energy transition. Governments already have the tools to do it: the two most effective are accelerating renewable energy and reforming electricity taxes and levies. Affordable electricity makes electrification the preferred alternative to fossil fuels while strengthening Europe’s competitiveness, energy security and climate action,” emphasises Christophe Jost, Energy Policy Coordinator at CAN Europe.
Electrification will only succeed if electricity is competitive with fossil fuels. Yet in many European countries, high taxes and levies, rising system costs and fossil-driven wholesale prices keep electricity unnecessarily expensive, slowing the uptake of clean technologies. Lowering electricity prices is therefore essential to accelerate electrification and deliver Europe’s climate goals, but also to ensure a fair transition by addressing the cost of living crisis and enhancing citizens’ trust in the transition.
This is why policymakers must act now to make electricity more affordable in order to unlock electrification and foster social acceptance for the energy transition.
To identify effective solutions, CAN Europe, its members and partners analysed the national contexts of seven European countries: Poland, Greece, Spain, Ireland, Italy, Czechia and Germany, highlighting practical measures and best practices to lower electricity prices, together with recommendations for policymakers.
The path to affordable electricity: lessons from 7 European countries
In this new report, CAN Europe, its members and partners analysed the national contexts of seven European countries, highlighting practical measures and best practices to lower electricity prices, together with recommendations for policymakers.
FOR MORE INFORMATION and media requests:
- Kasia Piasecka, Communications Coordinator, CAN Europe | katarzyna.piasecka@caneurope.org | +48 516 634 366
- Christophe Jost, Energy Policy Coordinator, CAN Europe | christophe.jost@caneurope.org
Guiding principles for governments:
1. Provide lowered and stable supply costs by accelerating renewable energy, storage and flexibility, reducing reliance on volatile fossil fuels. Experience across Europe shows that more renewables lower wholesale prices, while dependence on gas and coal keeps them high. Governments can also strengthen long-term power purchase agreements and expand two-sided Contracts for Difference (CfDs) to accelerate investment, reduce price volatility and pass the benefits of low-cost renewable electricity on to consumers.
2. Contain network charges and anticipate rising grid investment needs by redesigning tariffs to better reflect grid capacity and encourage more efficient use of the system, reducing the need for costly infrastructure investment. This should be complemented by sustained EU and national public investment to expand and modernise electricity grids without driving up consumer bills.
3. Stop overburdening electricity and lower the electricity-to-gas price ratio by shifting taxes and levies away from electricity and towards fossil fuels. Governments should reform how energy transition costs are financed, using general taxation where appropriate, while aligning tax reforms with carbon pricing and ETS2 to reward clean electricity, protect vulnerable consumers and support the uptake of clean technologies.
4. Enhance fairness by ensuring that electricity remains affordable for all consumers while preserving efficient price signals. Governments should replace broad price caps with targeted measures such as social tariffs or income-based support, while ensuring the fair distribution of electricity system costs between households and industry.
“Taken together, these priorities provide a framework for building an electricity system that is not only based on renewable energy, but also more affordable, resilient and trusted by consumers. By addressing the root causes of high electricity prices, Europe can create the conditions for a renewable-based power system capable of delivering stable, competitive prices over the long term while advancing decarbonisation and strengthening public support of the energy transition,” said Christophe Jost, Energy Policy Coordinator at CAN Europe.
Related publications:
- Factsheet: How can Europe bring electricity prices down?
- How do we make Electrification smart and fair? 5 essential facts
- CAN Europe’s FAQ on Electrification and Energy efficiency