Ursula von der Leyen, president of the European Commission, announced new efforts to ease the burden on households and firms that are suffering from soaring energy costs.
She said the EU must find a “comprehensive solution” to lower the energy bill that people pay. The approach has to address all four elements that make up the bill, rather than just one. In her words:
” Energy itself – more than 56 % of the bill
” Network charges – about 18 %
” Taxes and levies – roughly 15 %
” CO₂ costs – around 11 %
While von der Leyen emphasized that the overall market design should stay intact, she stressed that the key is to reduce the cost burden where gas determines electricity prices. To that end, the Commission is preparing a range of options, including:
” Optimizing the use of supply contracts and difference contracts
” Introducing state‑aid measures
” Assessing the possibility of subsidising or capping gas prices
On network charges, she sees room for action to make electrical grids more efficient so that less renewable energy is wasted. She also notes opportunities to adjust member‑state taxes and levies, and to modernise the Emissions Trading System as part of the package.