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Retail electricity prices are adjusted in response to fluctuations in wholesale markets, shaped by the regulatory policies of each country and, where relevant, consumer willingness to pay a premium to mitigate price volatility.
Lower gas prices, reduced demand and an increased use of renewable energies are the key factors driving a reduction in wholesale electricity prices across Europe. Futures contracts are pointing towards a stabilization of prices in the medium term.
European Commission proposals to mitigate the impact of electricity price inflation on households disposable income and business costs must consider how they affect security of supply and decarbonization.
