EU Agenda: The Fight for Cheaper Electricity

The European Council is considering interventions for cheaper electricity through energy transition and direct cost measures. It is recognized that increases in the prices of imported fossil fuels pose a structural risk, leading to more renewables, energy storage, and domestic production.

EU leaders acknowledge the need for short-term solutions due to pressure from industry and households. The crisis in the Middle East accelerates the need for a toolbox of temporary measures for the cost of imported fuels and measures for all components of electricity prices.

A review of the Emissions Trading System (ETS) is being considered by July 2026 to reduce carbon price volatility. Simultaneously, an ambitious package of measures for electricity grids is being promoted within 2026, with emphasis on faster licensing and electrical interconnections.

The existing target model of the wholesale electricity market remained intact, while the discussion shifted to reducing taxes and levies on electricity. The EU is considering revising the energy taxation framework.

Energy policy is now treated as the core of European competitiveness, with the European Commission being called upon to propose measures for electricity prices and the implementation of the Energy Union 2030.