On Tuesday 21 October, the European Commissioner for Energy and Housing, Dan Jørgensen, presented new measures designed to provide “quick relief” and bring down energy prices in the European Union, which are still too high compared with those of its competitors.
“We know that there is no miracle solution for reducing energy prices”, said Mr Jørgensen in a letter to the European energy ministers. Based on the European Commission’s Affordable Energy Action Plan (see EUROPE 13588/3), these measures cover the following seven areas:
State Aid. The European Commission is calling on Member States to take full advantage of the new ‘CISAF’ framework for State aid (see EUROPE 13667/26). This revised framework supports energy-intensive industries by bringing price relief and backing for their decarbonisation.
The EU institution says it will provide further guidance and assistance to Member States on how to design national schemes before the end of the year.
Cohesion. Member States are invited to maximise the use of European cohesion funds to invest in national networks and storage capacity. Following the mid-term review of Cohesion policy, they can present updated programmes before the end of 2025.
EIB. Industrial players should call on the financial resources provided by the EIB and national development banks. For example, the European Commission and the EU Bank recently launched a €500 million pilot programme to support the take-up of more corporate Power Purchase Agreements (PPAs).
Authorisations. In order to speed up the issuing of permits and authorisations, the European Commission is encouraging Member States to take advantage of the opportunities offered by the revised Renewable Energy Directive to accelerate the transition to cleaner and more affordable energy. It will also propose new measures to accelerate and streamline the issuing of permits as part of the ‘Grids’ package scheduled for adoption before the end of the year.
Interconnections. Member States must also redouble their efforts to improve energy interconnections with their neighbours. To support them in this approach, the Commission will present new measures as part of the ‘Grids’ package and it will present the ‘Energy Highways’ initiative to remedy eight key bottlenecks (in particular the Øresund strait, the Sicilian canal and the Iberian peninsula) (see EUROPE 13706/5).
Diversification. To bring down energy prices, the European Commission believes it is essential for the EU to further diversify its gas supplies by working with “reliable and trusted partners”, citing “the United States, Norway and Qatar”, among others. It will launch a specific survey on gas demand from companies in South-East Europe.
Taxation. Finally, the EU institution points out that taxes can account for up to a third of the energy bill. A reduction in these taxes “can make a real, immediate difference, notably for energy-intensive industries and vulnerable consumers” emphasised the European Commission, while also announcing the presentation of “recommendations” for lowering energy bill taxation.
See Dan Jørgensen’s letter: https://aeur.eu/f/j2i (Original version in French by Mathieu Bion)