Electricity prices in Europe rose significantly in October

In the EU, average monthly wholesale day-ahead prices rose in October amid fluctuations in renewable generation volumes and the impact of other factors.

October trends

According to Ember (as of November 5, 2025), this price on European markets was as follows:

• Italy – €111.02/MWh (+2% month-on-month);
• France – €66.51/MWh (+1.9 times);
• Germany – €88.54/MWh (+8.2%);
• Spain – €87.78/MWh (+46.3%);
• Sweden – €51.4/MWh (+23%).

Last month, the average monthly wholesale price for day-ahead electricity in Poland was €97.96/MWh, in Slovakia – €94.04/MWh, in Hungary – €114.41/MWh, and increased compared to September.

Last month, electricity prices in Europe fluctuated amid increased demand, changes in renewable energy generation volumes, gas prices, and carbon emissions, according to AleaSoft. In particular, CO2 futures tested levels of around €80/t last month, with investment funds accumulating net long positions amid an expected shortage of allowances, while the gas market remained relatively stable.

European decisions

At the end of October, the European Commission announced that it would redouble its efforts to reduce energy prices and ease the situation for industrial and domestic consumers, and outlined seven steps to achieve this goal.

In particular, the EC called on member states to make full use of the expanded state aid system (CISAF). The institution noted that the revised system opens up opportunities to support energy-intensive industries by reducing prices and supporting their decarbonisation. Further recommendations and assistance in developing national schemes are planned to be provided by the end of the year.

The bloc’s countries should also encourage industrial players to engage with key financial actors, such as the European Investment Bank (EIB) and national promotion banks, on financial opportunities and risk mitigation mechanisms, particularly with regard to power purchase agreements.

In response, a meeting of the Energy Union Task Force (EUTF) was held on November 4 to discuss measures to reduce energy prices. As discussed at the meeting, electricity prices in the EU have fallen to an average of around €82/MWh compared to €400/MWh at their peak, while there are significant differences in levels across Europe.

However, European energy prices remain historically high. Further integration of clean energy (renewable, nuclear) into the energy balances of EU countries, stronger interconnectivity, modern networks, flexibility, and sufficient storage capacity will help to reduce them.

Meanwhile, Germany expects to introduce industrial electricity prices at the beginning of next year – negotiations with the European Commission on this issue are in the final stages. The initiative provides for a fixed price of 5 euro cents per kWh, which will apply to approximately 2,000 energy-intensive companies in the country. This will cost the federal government €1.5 billion annually, and the program is scheduled to run until 2029.

Situation in Ukraine

In October of this year, the weighted average purchase and sale price of electricity on the DAM in Ukraine, according to information from the Market Operator, increased by 41.4% month-on-month to UAH 6,395.7/MWh (€132/MWh at the average monthly exchange rate of the hryvnia to the euro).

Demand on the DAM last month increased by 44.62% compared to September, while supply increased by 19.69%.

According to preliminary monitoring data from ExPro Electricity, Ukraine increased its electricity imports by 2.5 times month-on-month in October, to 360,000 MWh. Compared to October 2024, this figure has almost doubled. Hungary continues to account for the largest share of imports (51%).

At the end of last month, Ukraine resumed cross-border trade with Slovakia after a nearly two-month hiatus due to repairs on the Velke Kapusany-Mukachevo line. In the last three days of October, electricity imports from this country amounted to 7.6 thousand MWh.

Electricity exports in October 2025 fell by 85% compared to the previous month due to increased shelling of energy infrastructure – to 90.8 thousand MWh.

The maximum capacity of electricity imports in Ukraine increased to 2.1 GW, which significantly exceeds the figures for previous months.

Due to systematic Russian shelling of energy infrastructure in October, NPC Ukrenergo applied power restriction schedules for industrial consumers. In mid-October, industry and business again called for the opportunity to protect themselves from power outages by importing more than 60% of their own consumption.

Minister Svitlana Grynychuk noted in an interview with Canada’s The Globe and Mail that between March and September 2025 alone, the Russians carried out more than 3,000 strikes on Ukraine’s energy facilities. In October, these strikes intensified.

At the same time, Ukrainian industry continues to emphasize that the cost of electricity remains a problem for most industrial sectors. On November 4, the regulator, the National Energy and Utilities Regulatory Commission (NEURC), approved Ukrenergo’s tariff for electricity transmission in 2026 at UAH 786.74/MWh (excluding VAT), which is 14.6% higher than the current year’s tariff. In addition, there are plans to increase the dispatching tariff by 11.3%. The decision is subject to further discussion for final approval.

On the same day, a number of associations issued an open statement to the government, the relevant ministry, and the regulator regarding the tariffs of state monopolies. In particular, they propose setting Ukrenergo’s tariffs at an economically justified level (electricity transmission – no higher than UAH 733.96/MWh, dispatching – no more than UAH 100/MWh) and the development of state support instruments for energy-intensive export-oriented industries as a temporary anti-crisis measure.