European Commission targets electricity-to-gas price gap to drive electrification

The European Commission has proposed reforms to narrow the price gap between electricity and natural gas to encourage the transition away from fossil fuels. By 2030, the Commission aims for electricity prices for households to be no more than 2.5 times the price of gas, while the ratio for industrial users should not exceed two to one. Currently, electricity in the EU costs nearly three times as much as gas, which hinders the economic viability of investments in heat pumps, electric vehicles, and industrial electric furnaces.

To achieve these goals, the Commission is considering restructuring energy charges, including taxes and grid fees, to prevent them from disproportionately inflating electricity costs. The reform also aims to incentivize more efficient infrastructure use.

In a related market development, data from the Energy Regulatory Office shows that natural gas prices rose significantly in the second quarter of 2026. The average price for gas imported from EU and EFTA countries reached 206.18 PLN/MWh, representing a 17.80% increase from the previous quarter and a 24.98% increase compared to the same period in 2025. Gas imported from outside the EU and EFTA also saw a price increase of 9.84% quarter-on-quarter.