ACER and CEER’s 2025 Retail Monitoring Report analyses how retail electricity markets can contribute to unlocking consumer flexibility in the context of the energy transition.
Consumers’ active participation in retail electricity markets can help Europe accelerate the transition to clean energy. However, the potential of this consumer (also called demand-side) flexibility remains largely untapped due to the uptake of inflexible contracts, uneven smart meter rollout and limited competition in some retail markets.
What are the key findings?
- While retail electricity prices have stabilised, lower wholesale prices were not fully passed onto consumers mainly due to inflexible contracts.
- Inflexible contracts that protected consumers during the crisis are now leaving many households tied to contracts above prevailing wholesale market prices.
- The uptake of dynamic and time-of-use contracts is limited in most Member States; inflexible contracts remain dominant.
- Smart meter rollout and data accessibility progress unevenly across the EU.
- Households with higher electrification potential (e.g. owners of electric vehicles or with solar PVs) can provide greater flexibility and achieve larger savings, provided that appropriate contract structures and tools are in place.
What are the main recommendations?
- Complete the rollout of smart meters and ensure consumers and authorised third parties have standardised and secure access to consumption data.
- Facilitate dynamic and time-differentiated offers.
- Phase out general price interventions while maintaining targeted support for vulnerable consumers.
- Encourage competition and innovation in retail markets to expand consumer choice and engagement.
A retail market that reflects market conditions and provides clear, timely price signals can help consumers contribute to a more efficient, affordable and decarbonised electricity system.
This report is complemented by ACER’s other retail monitoring products, including country sheets (electricity and gas) and a retail pricing dashboard.
