EU publishes much-needed plans to reduce consumers’ energy bills

The European Commission published today some much-needed measures to help keep energy bills affordable in its Citizens Energy Package, which aims to help EU countries implement existing energy legislation. The move comes just as Europe is potentially looking at another energy price crisis caused by fossil fuel dependence, as in 2022.

Above all, the Commission is planning to lower consumers’ energy bills. The Commission recommends countries ensure consumers get best tariff advice, easier access to flexible contracts and energy sharing schemes (allowing consumers without access to a rooftop to benefit from cheap local solar power), and improved contractual terms.

For vulnerable consumers, the Commission also plans to share best practices with EU countries on addressing energy poverty and help countries implement safeguards against energy disconnections.

Unfortunately, the Commission was not stronger in pushing countries to review the taxes on consumers’ bills via a Recommendation. Lowering taxes could lead to reductions of around 14%.

BEUC Director General Agustín Reyna commented: “Consumers still have bitter memories of the last energy crisis, when prices went through the roof and many struggled to enforce their rights. Recent EU energy laws have given consumers important new rights, such as the right to be protected from energy disconnections: but these rules only work when properly implemented. This package then was sorely needed and it’s very timely, with uncertainty in the Middle East potentially opening the door to another energy crisis. Implementing these measures would reduce energy bills, offering households tangible savings and consumers – including the most vulnerable households – would be better protected. It's just a pity the Commission was not stronger in pushing governments to review the taxes on consumers’ bills. Now it’s over to EU countries to act to ensure these plans become reality."
 

Read more

• Blog: Energy affordability affects us all: here’s what the EU can do
• Report: How to make energy markets work for consumers and deliver affordable bills