What is the electricity-to-gas price ratio, and why does it matter for heat pumps?

What is the electricity-to-gas price ratio, and why does it matter for heat pumps?

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What is the electricity-to-gas price ratio, and why does it matter for heat pumps?

This bulky term simply indicates how much more expensive electricity is than gas. This allows you to compare the running costs of a heat pump with those of a gas boiler. The problem: it does not always offer the best prospects for heat pumps. 

High electricity prices compared to gas is a significant barrier to the adoption of heat pumps as a sustainable heating solution. Although heat pumps are three to five times more energy efficient than conventional gas boilers, their higher efficiency does not always offset the substantial difference in energy prices. In many European countries, electricity costs are several times higher than gas, making heat pumps more expensive to run and discouraging consumers from replacing their gas boiler with a heat pump.

Belgium tops the list with the highest electricity prices relative to gas (4.1 times higher) than in any European country. The high electricity costs make switching to energy-efficient heat pumps less economically attractive due to high taxes, levies and public service obligations charged on electricity.

Therefore, the Belgian consumer organisation and CLEAR HP project partner, Testachats/Testaankoop has joined forces with the Belgian Federation of electricity and gas companies, FEBEG. They are calling on the country’s federal and regional governments to develop a transparent strategy and a clear timetable for the introduction of fair energy taxation and removal of other charges that have nothing to do with the electricity price. 

In addition to the opportunity to participate in a collective heat pump purchase campaign, CLEAR HP is advocating for a comprehensive and long-term policy framework at EU and national level to address, for example, the price discrepancy, but also other barriers for consumers to move away from fossil fuels.
 

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Team Energy

The European Consumer Organisation
Europäischer Verbraucherverband
Bureau Européen des Unions de Consommateurs

Sophia Pena Pereira, BEUC
Sophia Pena Pereira
Energy Policy Officer