The network component of the electricity price paid by households in the EU increased, on average, from approximately 60 euros per MWh in 2019 to approximately 84 euros in 2025, according to the European Union Agency for the Cooperation of Energy Regulators, ACER. The increase of around 40% is nominal, without adjustment for inflation. In the report on energy infrastructure development, published on 6 November, the agency calls for better-justified investments and an examination of congestion revenues retained for future uses, at a time when networks are placing increasing pressure on the cost of electricity.
In brief
The average cost of the network component reached 84 euros per MWh for households in the EU in 2025, compared with 60 euros in 2019. The nominal increase of around 40% concerns this component per unit of energy, not the entire bill.
Annual capital expenditure by electricity transmission operators reached approximately 30.5 billion euros, almost three times the 2019 level. The comparison covers 24 countries and uses, in some cases, 2024 data as an estimate for 2025.
Approximately 12.5 billion euros of congestion revenues remained available for future uses in 2025. They represent around 60% of the available amount, which also includes money unused in previous years; tariff reductions are conditional on the adequate fulfilment of priority objectives.
ACER calls for investments to be assessed alongside solutions such as demand flexibility, storage and better use of existing infrastructure. High congestion revenues may signal constraints, but do not alone justify building new lines.
ACER’s calculations use Eurostat data for the 27 Member States and include all household consumption categories. The indicator measures the network cost for each MWh of electricity, equivalent to 1,000 kWh, not the increase in the entire bill or in each household’s annual payment. In the report’s detailed chart, the network represented 28.6% of the final price in 2025, nearly 29%; the remainder accounted for energy and supply, as well as taxes and other levies. The European average conceals major differences between countries, both in level and in evolution.
The pressure is emerging as investments are already accelerating. Annual capital expenditure by electricity transmission operators rose from approximately 10.4 billion euros in 2019 to 30.5 billion in 2025, in ACER’s comparison for 24 countries. For some of these, the report uses 2024 data as an estimate for 2025. The amounts concern the total capital expenditure of transmission operators; investments in distribution are analysed separately.
Networks must connect new renewable generation capacity, support electrification and replace ageing infrastructure. These needs are compounded by the expansion of interconnections and the rising cost of equipment and manufacturing, ACER notes. Investments place pressure on network tariffs, but the effect per unit of energy also depends on utilisation: higher electricity consumption allows costs to be distributed over a larger volume.
Spending the money alone does not ensure that capacity will be commissioned on time. In the annual monitoring cycles analysed, an average of 22% of electricity transmission projects with European priority status experienced delays, mainly due to permitting. The report treats rescheduling resulting from changing needs or investment priorities separately. For projects whose need has been confirmed, ACER recommends simpler and more predictable permitting procedures, with clear deadlines and early public involvement.
Another part of the financing comes from congestion revenues. These arise from allocating limited transmission capacity between market zones where electricity has different prices. In the day-ahead market mechanism, revenue is calculated by multiplying the scheduled commercial exchange by the price difference between zones. These differences reflect both network constraints and the structure of generation and demand. The revenues thus obtained are subject to European rules on their use. ACER’s total balance also includes revenues from intraday and balancing markets and from long-term transmission rights.
In the reporting for 2025, approximately 12.46 billion euros remained in separate accounts for future uses, around 60% of the 21.08 billion available. This available amount comprises the 10.37 billion collected during the year, unused balances from previous years and applicable adjustments. The analysis covers 23 Member States; some reported balances and expenditures also include revenues from borders with non-EU countries, because it was not possible to separate the amounts. According to the breakdown presented by ACER, around 32% of the available amount was used for priority objectives, while 1.69 billion euros was used to reduce tariffs in 2025.
The regulation on the internal electricity market, through Article 19, establishes an order of priority for this money. The objectives include guaranteeing the availability of already allocated capacity and maintaining or increasing capacity between zones, through optimising interconnections, coordinated operational measures or investments that reduce congestion. Under specific conditions, the text also includes compensating offshore renewable energy producers affected by limited access to interconnected markets. Once the priority objectives have been adequately fulfilled, regulatory authorities may take the revenues into account when setting tariffs. The regulation provides for residual revenues to be kept in a separate account until they can be used for priority objectives.
ACER considers that the continued accumulation of these amounts merits examination, given that investment needs and tariffs are rising. Assessing infrastructure needs thus also affects the bill: it enables authorities to determine whether priority objectives are covered and which revenues can be used to reduce tariffs. This possibility depends on the assessment of needs and does not represent an automatic refund of the entire amount held in the accounts.
The agency warns that high congestion revenue alone does not prove the need for a new line. Authorities must examine whether the restriction is persistent and whether it can be resolved more efficiently by changing operations or making better use of existing infrastructure. Revenues may indicate where additional capacity would reduce price differences, but the investment choice must take costs and alternatives into account.
Among these, the report includes demand flexibility, storage and technologies that increase the capacity of the existing network. ACER calls for remuneration rules to allow operators to choose the technical or operational solution offering the best ratio between cost and value to the system. Financial incentives for building new assets should not disadvantage a more efficient operational solution. At the same time, planning must use realistic and updated assumptions regarding demand and generation, to limit both delays to necessary investments and the costs of projects that do not address future needs.
To make these choices verifiable, ACER recommends publishing estimates of network investment and operating expenditure for at least the next five years, where possible separately for each year. Regarding congestion revenues, the agency calls on national authorities to support additional capacity where it is necessary and beneficial and to be able to direct towards tariff reductions amounts that are no longer needed for priority objectives, once these have been adequately fulfilled.
Latest News
12:24
12:07
11:54
11:40
11:30
See more news