European leaders called for both immediate and structural action on energy prices on 19 March. The Commission is asked to present a toolbox of targeted temporary measures to address fossil fuel price spikes, as well as urgent measures covering all four components of electricity prices: generation costs; network charges; taxes and levies; carbon pricing.
Member States and the Commission are also called upon to accelerate the Energy Union 2030 agenda – which refers to ensuring secure, sustainable, competitive, and affordable energy for all Europeans while advancing climate goals – to enable increased and affordable electrification. Co-legislators are urged to agree on an ambitious grids package in 2026. The European Council will review progress in June.
At the post-Council press conference, Commission President von der Leyen outlined concrete actions across the four electricity price components. Particularly notable for EHPA members – although how exactly this would be done is not yet clear – is the Commission’s commitment to propose lower mandatory tax rates on electricity, ensuring it is taxed less than fossil fuels.
EHPA has long urged action on electricity taxes: high electricity taxes relative to gas remain one of the key barriers to heat pump uptake across Europe, and rebalancing at EU level would be a significant step forward. Medium-term measures are likely to form part of the July Emissions Trading System (ETS) review. Central to this is the proposed ETS Investment Booster – a €30 billion fund financed through 400 million ETS allowances, targeting decarbonisation projects with guaranteed access for lower-income Member States.
