London among Europe's most expensive cities for household electricity
Millions of UK households will face a 6.4% increase in energy bills from 1 April as Ofgem raises its price cap for the third consecutive quarter.
For those on a standard variable tariff in England, Scotland, and Wales, the average annual bill will rise from £1,738 to £1,849—an increase of £111 per year or £9.25 per month. The rise follows a surge in wholesale energy prices.
While Ofgem predicts bills may drop in the summer, fuel poverty campaigners warn that the latest price cap hike will place additional financial strain on vulnerable households.
How do UK energy costs compare to Europe?
The latest Household Energy Price Index (Hepi) analysis reveals that London ranks among the most expensive European cities for electricity.
The UK’s reliance on gas for electricity generation contributes to higher energy prices compared to other European nations.
As of 3 January 2025, the Hepi report found that the most expensive cities for household electricity in Europe (including taxes) were:
- Berlin (€40.42 per kilowatt-hour)
- Brussels (€38.52)
- Copenhagen (€37.47)
- London (€36.75)
- Bern (€36.41)
In contrast, the cities with the lowest household electricity prices were:
- Budapest (€9.07)
- Kyiv (€9.76)
- Belgrade (€10.50)
Gas prices also vary significantly across Europe. The highest gas costs were recorded in:
- Stockholm (€33.27 per kilowatt-hour) – three times the European average and 13 times higher than Budapest (€2.49)
- Amsterdam (€18.26)
- Bern (€17.41)
London ranked 18th out of 27 European capitals, with gas prices at €8.81 per kilowatt-hour, while Dublin had the eighth-highest cost (€12.01).
Why are UK energy bills rising?
The Hepi report cites cold weather and disruptions in gas supply through Ukraine as key reasons for the recent 4% rise in European natural gas prices. This has led to significant gas storage withdrawals.
Ofgem has attributed the UK’s price hikes primarily to rising global wholesale energy costs. The Russia-Ukraine war has played a major role, with the shutdown of a key gas pipeline that previously transported Russian gas to Europe.
Energy Secretary Ed Miliband stated that the Government is working to reduce bills through investment in clean, homegrown energy sources. He emphasized that moving away from fossil fuels controlled by foreign states is the key to long-term energy security for the UK. Photo by Aiseinau, Wikimedia commons.