ACER says dynamic prices could cut EU power bills 20%, yet only 7% use them
Serguey Asael Shinder1 min readThe EU energy regulators' agency ACER has published its 2026 Monitoring Report on retail energy markets, focused on bills, affordability and what electrification means for consumers.
Household retail prices rose sharply after the 2022 crisis and have stayed high. In 2025, EU households spent an average of €840 on electricity and €1,170 on gas. Electricity spending ranges from 1.2% to 3.9% of national median income across member states.
ACER's central warning is about price signals. Electricity remains expensive relative to gas, and network charges, taxes and upfront costs often widen the gap, which weakens the incentive to switch to heat pumps and other electric technologies. At the same time, most consumers see none of the benefit that flexible use could bring: only 7% of EU households are on dynamic price contracts, while in nine countries more than 80% are on single fixed-term, fixed-price contracts. Smart meters reach 66% of monitored customers, but coverage is below 20% in several countries. ACER calculates that switching to dynamic pricing and moving consumption to cheaper hours could have saved households an average of 20%, around €120, on their 2025 electricity bills.
The report points to three areas as electrification raises consumption: making electrification financially attractive against fossil fuels, making sure rising network investment delivers value for consumers, and better monitoring of the contracts consumers actually choose, where ACER says data remain incomplete.
Why it matters
Electrifying heat and transport only lowers household costs if the electricity tariff rewards it. The report's numbers show two brakes applied at once: a price ratio that favours gas, and contracts that hide the cheap hours from most consumers.