Hypothetical impact on average household electricity prices from reducing taxes to the legal minimum by EU country, 2025

Sources

IEA analysis based on Eurostat (2026)

Notes

Note by the Republic of Türkiye The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiye shall preserve its position concerning the “Cyprus issue”. Note by all the European Union Member States of the OECD and the European Union The Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus. Tax rates reflect 2025 levels. VAT is assumed to be reduced to the legal minimum of 5%, and environmental taxes to the minimum excise duty of 1 EUR/MWh. Existing subsidies and rebates are preserved but scaled down proportionally to the overall tax reduction so that no consumer is left worse off. Other taxes and price components are left unchanged.