EIB Survey Finds Energy Costs Are Cutting European Purchasing Power

A November 5 survey by the European Investment Bank (EIB) found that 60% of Europeans reported reduced purchasing power, while 82% expect the energy transition to reduce dependence on imported oil and gas. The findings show the importance Europeans place on energy security as household finances remain under pressure.

Eurostat reported a 2.2% decline in average EU household electricity prices during the first half of 2026. Prices nevertheless remained above pre-2022 energy crisis levels, with Germany recording €0.36 per kilowatt-hour against the EU average of €0.28.

The EIB survey also found that 79% of Europeans expect the energy transition to bring more stable or lower energy prices. Whether those expectations are realised will depend partly on the expansion of electricity generation and networks, alongside the costs of financing and operating new infrastructure.

Germany’s Energy Costs Force Changes in Household Spending

A November 5 European Investment Bank survey found that 66% of Germans reported reduced purchasing power over the previous year, while 40% said energy costs had led them to cut spending on food or healthcare.

Germany’s Federal Statistical Office reported a 12.2% annual increase in energy prices in October 2026. September figures showed electricity prices falling 5.5%, while motor fuel prices rose 37.1% and heating oil increased 74.9%.

The differences across energy products indicate that households faced varying price movements depending on their energy consumption.

The latest detailed household expenditure survey, covering 2023, recorded average monthly energy spending of €215. More recent retail data showed a 2% decline in inflation-adjusted sales in September 2026, including a 1.4% fall in food sales.

The retail figures establish weaker consumer spending during the month, although they do not identify energy costs as the cause.

Inflation-adjusted earnings increased 1.5% in the second quarter of 2026, according to the Federal Statistical Office. Average wage growth therefore remained positive even as the EIB survey recorded widespread pressure on household purchasing power.

The figures measure different periods and populations and do not establish how energy expenses affected individual households.

EIB Energy Financing Moves Into Europe’s Electricity Networks

Dutch grid operator Enexis secured €500 million from the European Investment Bank in July 2026 to expand and modernise approximately 4,600 kilometres of electricity lines under its annual investment programme.

The financing supports network upgrades needed to accommodate growing electricity demand and additional renewable generation.

Czech transmission operator ČEPS received €380 million to upgrade 509 kilometres of high-voltage lines by 2030. The investment will expand transmission capacity and strengthen electricity supply reliability as the country develops its power network.

In Poland, Ocean Winds secured approximately €2 billion from 15 lenders for its 390-megawatt BC-Wind offshore project, including €600 million from the EIB.

Construction began in 2026, with electricity production scheduled for 2028. The financing covers a generation project with a defined operating target, rather than network upgrades alone.

Belgian transmission operator Elia secured a €1 billion EIB loan in September for the Princess Elisabeth Energy Island. Foundation installation has been completed, with cable and electrical works forming part of the remaining development programme. The first offshore wind connections are planned from 2031.

Europe’s Electricity Investment Depends on Private Capital

The European Commission estimates that EU electricity grids require approximately €600 billion in investment by 2030 and €1.2 trillion by 2040.

Grid operators must secure substantial financing for transmission and distribution expansion, with national regulators determining which investment costs can be recovered through electricity network charges.

RWE completed a €3.6 billion acquisition in July 2026, increasing its indirect ownership of German transmission operator Amprion to approximately 55%.

The transaction was financed through an equity capital raise supported by institutional investors, including Qatar Investment Authority and Norges Bank Investment Management.

RWE expects to contribute €6.5 billion to Amprion’s grid expansion through 2031, including €4 billion associated with its increased ownership. A further stake acquisition agreed in September would raise its interest to approximately 58%, subject to completion.

Iberdrola agreed in July to acquire 80% of Finnish electricity distributor Caruna for €2 billion, valuing the business at approximately €5 billion including debt. Caruna operates around 89,000 kilometres of distribution networks serving 1.5 million people.

Finland’s regulatory framework extends through 2031 and offers an estimated return on equity of around 8%, according to Iberdrola. The European Commission cleared the acquisition in September, with completion expected in the first quarter of 2027.

The financing arrangements place considerable importance on regulatory decisions. National authorities determine permitted returns and the recovery of eligible grid expenditure, affecting the revenues available to investors.

The European Commission has identified network charges as a channel through which electricity infrastructure costs reach consumers, making the treatment of new grid investment relevant to future household bills.

Europe’s Energy Investment Faces Its Affordability Test

European governments are negotiating changes to electricity network charges as they seek to address energy costs. EU energy ministers discussed the proposed reforms in October 2026, with further negotiations expected in December. The outcome will affect how electricity network costs are allocated among consumers and businesses.

Poland’s Baltic Power offshore wind project completed installation of its 76 turbines in October, with full operations expected in early 2027.

The project will add new electricity generation capacity to Poland’s power system, although its effect on household prices will depend on wholesale market conditions and network charges.

Competition for European energy financing remains substantial. The European Commission received 67 project applications requesting €2.88 billion against €600 million available under its funding programme.

Award decisions are expected in January 2027, leaving applicants awaiting confirmation of financial support before proceeding with their investment plans.

The December regulatory negotiations and January funding decisions will establish the next steps for electricity investment, while Baltic Power’s commissioning will provide additional generation capacity.

The effect on household bills will depend on how the new supply influences market prices and how infrastructure costs are recovered through electricity charges.