Electricity prices across Europe in March 2026 remain significantly elevated compared to the pre-2021 period, reflecting the structural changes in the European energy market since the 2022 gas crisis. However, the picture is highly varied by country, with some markets seeing meaningful price relief while others continue to face high costs.
Germany: Elevated but Stabilising
German household electricity prices remain among the highest in the world, reflecting the costs of the Energiewende — the country’s energy transition programme — including renewable energy levies, grid costs and taxes. Wholesale prices have fallen from 2022 crisis peaks, but retail prices are sticky due to the high fixed cost component in German electricity tariffs.
France: Recovery on Track
France’s electricity prices have benefited from the recovery of nuclear generation capacity, with EDF’s improved reactor availability providing more low-cost generation. The regulated tariff (TRVE) has seen increases moderate compared to the crisis years, and France’s export capacity to neighbouring countries is recovering.
Spain: Solar Driving Midday Lows
Spain’s high solar penetration is creating a two-speed electricity market, with midday wholesale prices falling to near-zero or negative on sunny days, while morning and evening peaks remain higher. Households with smart meter rollout and time-of-use tariffs can take advantage of these midday lows, but most consumers are still on flat-rate tariffs that don’t reflect this dynamic.
UK: Cap Still the Key Price Setter
UK household electricity prices continue to be set primarily by the Ofgem price cap data energy price cap, which is reviewed quarterly. March 2026 prices are under the Q1 cap, with an upward revision expected in April. The UK government’s various consumer protection measures introduced during the energy crisis have largely been wound down.
