Renewable Energy Weakens Link Between Wholesale Gas Prices and Consumer Bills
The European Central Bank (ECB) has analyzed the impact of wholesale energy prices on consumer bills in the euro area, and found that the transmission of price increases is uneven across countries.
The study, which looked at data from 2026, found that higher renewable generation had weakened the link between wholesale gas and electricity prices. This meant that changes in wholesale gas prices were having a smaller impact on consumer energy bills than they did during the 2021-22 energy crisis.
However, the effect of wholesale price increases on consumer bills varied significantly depending on the country's electricity-generation mix. For example, Spain, which has the highest share of renewable electricity generation among the countries examined, saw a substantial decline in the number of hours when gas sets electricity prices. In contrast, Italy continued to rely heavily on gas for electricity generation.
The study also found that taxes and charges accounted for an average 31% of euro area gas prices and 27% of electricity prices in 2025, limiting the direct impact of wholesale price movements on consumer prices.