The countries are Austria, Belgium, Switzerland, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal and Sweden.
Iran closed the Strait of Hormuz in February 2026, which sent oil and gas prices skyrocketing. Soon afterwards, the European Commission published plans to encourage EU governments to lower electricity tax, to speed up the shift away from oil and gas. These are likely drivers of the growth in heat pump sales so far this year, which EHPA has long argued depend strongly on the electricity price.
“Europe is ending its addiction to a toxic, costly drug from dodgy suppliers – gas” said Paul Kenny, EHPA director general. “The sooner electricity becomes the most affordable solution, the quicker we'll get clean. The fix? Dropping taxes on electricity and shifting them over to fossil fuels. The European Commission has made this clear – but now all EU governments must enact it, following in the footsteps of the Netherlands and Belgium.”
The European Commission in its Electrification Action Plan specifically says tax on electricity should be no higher than that on gas. It is proposing a revision of the network charges consumers pay on their power bills to reward flexible options like heat pumps. For now, EHPA findings show taxes on electricity are frequently higher than on gas, making it cost several times more.
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