How to ensure consumers are protected during the gas phase-out

The days of gas as a home-heating solution will eventually come to an end, as consumers move to cleaner options like heat pumps.

This will mean the gas network will become increasingly unused with the remaining consumers connected to it having to pay for it. Without public support, this will mean significant costs for consumers, according to a new report from BEUC, The European Consumer Organisation.

The rising costs of maintaining the gas network will also disproportionately impact those least able to switch to cleaner heating options (for example, vulnerable consumers or tenants). 

Moving away from gas

Lowering energy bills is a top priority for consumers. However, Europe remains heavily reliant on fossil fuels and there lack clear plans to manage their phase-out.

This exposes consumers to recurring price volatility, as experienced during the energy crisis in 2022 and the current Middle East crisis. This comes on top of expected increases in the costs of distributing gas to households in the coming years.

However, the heating transition will not happen overnight, particularly where gas network decommissioning plans are missing or delayed. Some households may struggle with up-front costs and for those who remain connected, the costs for funding and maintaining the network (passed on to consumers via their energy bills), are expected to rise sharply.

Managing the transition

The report makes a series of policy recommendations to help manage the transition, including:

• The EU and national governments should ensure local gas grid decommissioning plans are prepared by 2030 to give consumers clarity on their next heating system.

• Consumers should be informed of network shutdowns at least 10 years in advance to allow them to plan ahead.

• Decommissioning costs should be fairly distributed, to ensure the impact on consumers’ energy bills is limited.

• Consumers need support to cope with the up-front costs of switching to sustainable heating options and there should be targeted measures to help those who cannot switch easily.

Read the report (below) which is based on a study commissioned by BEUC to the Florence School of Regulation.