Romania has the highest ratio of household electricity to gas prices in ACER’s 2025 comparison

In 2025, electricity cost 4.2 times more than gas per unit of energy for households in Romania, the highest ratio among the 24 residential markets compared by ACER and CEER. The difference remains large even after taxes are removed, which may reduce the economic incentive to electrify heating, but this does not mean that Romania has the most expensive electricity in Europe.

In 2025, Romania had the highest ratio between household electricity and gas prices among the 24 residential markets analyzed by the European Union Agency for the Cooperation of Energy Regulators, ACER, and the Council of European Energy Regulators, CEER. Electricity cost 4.2 times more than gas per unit of energy when taxes, tariffs and other contributions are included, and approximately 3.8 times more when these components are excluded. The indicator measures the relative price of the two forms of energy and is not a ranking of the highest household bills or the most expensive electricity markets in Europe.

In brief
Romania recorded a ratio of 4.2 between household electricity and gas prices in the 2025 data, the highest among the 24 markets compared.

Excluding taxes, tariffs and other contributions, Romania’s ratio remains high, at approximately 3.8.

ACER’s benchmark for 2030 is a ratio of no more than 2.5 for households, but this is a policy target for electrification, not a legally binding cap applicable to consumers.

For the non-residential sector, Romania has a ratio of approximately 3.6 with taxes and 3.3 without taxes, but it does not rank first in that comparison.

ACER warns that a high ratio may discourage switching from gas to electric technologies. However, the efficiency of a heat pump, equipment costs, home insulation and actual consumption can change the result for each household.

The ratio between electricity and gas prices is important for European electrification policy because households decide whether to switch from fossil-fuel-based technologies to heat pumps, electric vehicles or other electric solutions partly on the basis of the relative cost of energy. If a kilowatt-hour of electricity is much more expensive than a kilowatt-hour of gas, investing in an electric technology may become harder to justify financially, even if that technology uses energy more efficiently. ACER nevertheless emphasizes that the price ratio is only one of the factors determining the final cost of an energy service.

In Romania’s case, the difference is not explained exclusively by taxes. The comparative figure in the report indicates a ratio of approximately 4.2 when the total prices paid by households are used, and approximately 3.8 after taxes, parafiscal charges, tariffs and other contributions are removed. The fact that the difference remains very large in the second comparison shows that the underlying structure of electricity and gas prices contributes substantially to the economic signal received by consumers, even though taxes and network tariffs may amplify or reduce the difference.

However, the ACER comparison should not be interpreted as proof that Romania has the most expensive electricity among European countries. The indicator divides the price of electricity by the price of gas in each national market. A ratio may be very high because electricity is relatively expensive, gas is relatively cheap, or because of a combination of the two. The absolute level of the bill also depends on household consumption, the size of the home, climate, building efficiency and disposable income.

The data used in the report’s annexes illustrate this difference. For Romania, ACER uses an average electricity price of EUR 234/MWh and average annual consumption of 1.612 MWh, producing an estimated expenditure of approximately EUR 377. For gas, the report uses EUR 56/MWh and average consumption of 8.261 MWh, resulting in an estimated annual expenditure of approximately EUR 463. These are national averages constructed for comparisons between markets and are not representative bills for every household in Romania.

Expressing costs as a share of income offers a different perspective. For Romania, ACER uses a median annual household income of approximately EUR 13,750 in its comparative methodology. The estimated expenditure on electricity represents approximately 2.7% of this amount, while gas accounts for approximately 3.4%. The difference shows why a lower unit price for gas does not automatically mean lower annual expenditure, since households that use gas for heating generally purchase a much larger quantity of energy.

ACER places these data in the context of European electrification targets. The Commission’s plan seeks to bring national ratios between electricity and gas prices down by 2030 to a maximum of 2.5 for households and 2 for non-residential consumers. These values serve as benchmarks for electrification policy and for assessing price signals, not as maximum tariffs that states are required to impose.

Romania also significantly exceeds the benchmark used for non-residential consumers. The ratio is approximately 3.6 when taxes are included and 3.3 without them. Romania is not first in this comparison, however, because Italy records a higher total ratio of approximately 3.7. This distinction is important because the situation of households cannot automatically be applied to businesses, which have different consumption levels, tariff structures and tax regimes.

At European level, the issue is not specific to Romania. ACER shows that in 15 of the 24 residential markets analyzed, the price of electricity exceeded the price of gas by more than 2.5 times in 2025. The agency considers that such differences may weaken the economic case for electrification and slow the transition to heat pumps and other electric technologies, even as the EU seeks to reduce its dependence on imported fossil fuels.

However, the report warns against concluding that the simple price ratio determines whether a heat pump is more expensive than a gas boiler. Electric technologies can convert purchased energy more efficiently. In ACER’s modeled example, a heat pump with a coefficient of performance of 3 provides the same amount of useful heat at an energy cost approximately 26% lower than a gas boiler with an efficiency of 90%. The simulation does not include the heat pump’s initial investment, installation, maintenance or any renovation and insulation work, so it cannot be converted into an estimate of savings for a Romanian household.

The structure of the bill also matters. The ACER report shows that across the EU, taxes, contributions and other fiscal components accounted in 2025 for approximately 28% of the household electricity price and 24% of the gas price. Network costs and the way taxes are distributed between electricity and fuels, alongside the energy component, influence the economic incentive for consumers. However, the report does not allow differences between wholesale and retail prices to be converted into supplier profits, because these differences include procurement, hedging, balancing and other commercial costs.

ACER therefore emphasizes the distinction between the price per unit of energy and actual household affordability. A market with a higher unit price may impose a smaller burden on the population if income levels are higher or consumption is lower, while a country with apparently lower tariffs may face a greater affordability problem. For Romania, the very high electricity-to-gas ratio is primarily relevant as a signal for electrification, not as a complete measure of energy poverty or the total cost borne by consumers.

The report’s data refer to 2025 and do not automatically describe Romania’s current tariff situation. National interventions concerning prices, taxes or support schemes may change, and ACER states that the historical data in the report do not capture subsequent market developments. The comparative conclusion nevertheless remains important for medium-term energy policy: at the starting point measured by ACER, Romania gave households the most unbalanced price signal between electricity and gas among the residential markets included in the comparison.

https://2eu.brussels/ro/news/romania-are-cel-mai-mare-raport-intre-pretul-electricitatii-si-al-gazului-pentru-gospodarii-in-comparatia-acer-din-2025