Why do we need this Action Plan?
Our energy market drives our economy, supports our society, and connects our communities. Together, weve built resilient grids, decoupled economic growth from greenhouse gas emissions, and shown leadership in the global energy transition.
The EU managed the recent energy crisis due to the rapid deployment of clean energy, supply diversification, and the availability of critical energy interconnections. Solidarity among Member States was essential.
However, theres a clear and urgent need to strengthen our Energy Union. High energy costs are hurting our citizens and businesses. Energy poverty affects more than 46 million Europeans, while industrial electricity prices have nearly doubled. The current situation undermines the EUs global standing and competitiveness.
As a key part of the Clean Industrial Deal, the Action Plan for Affordable Energy focuses on reducing energy costs for citizens, businesses, and communities across the EU. It will lower energy bills short-term while accelerating necessary cost-saving structural reforms and strengthening our energy systems to mitigate future price shocks.
What is driving up energy costs in the EU?
Energy costs are determined by three main components: energy supply costs, network charges, and taxes. Supply costs depend on wholesale prices, influenced by factors such as supply and demand, energy mix, interconnections, competition, and geopolitical realities.
The EU energy system faces structural challenges that are increasing prices. Europe relies heavily on imported fossil fuels, causing price volatility and making the EU vulnerable to external pressure and global market uncertainties.
How will this Action Plan help lower energy costs for Europeans?
The Action Plan combines measures to reduce bills short-term with cost-saving structural reforms to reinforce our energy system and make it more resilient against future shocks. Full engagement of Member States and stakeholders will be crucial to reduce costs and build a genuine Energy Union that delivers competitiveness, security, decarbonization, and a just transition, providing all European consumers with the benefits of cleaner and cheaper energy.
Which actions can be implemented in the immediate term to benefit consumers?
Member States play a crucial role in reducing electricity bills short-term. The Commission will support them, particularly in areas of taxation and network charges where immediate action can be taken.
How will European industries have access to affordable energy?
All measures proposed in the Plan will support the competitiveness of European industry by achieving lower energy costs, both short-term and long-term.
What are the new measures to support the clean energy transition?
Swift and full implementation of existing EU electricity legislation is crucial to increase the share of renewables and reduce electricity supply costs.
How will this Action Plan ensure fair competition in the gas markets?
The Commission has set up an internal Gas Market Task Force to thoroughly examine EU natural gas markets and, if necessary, take actions to ensure their optimal functioning and prevent practices that distort market-based pricing.
How will the Commission ensure that the EU is ready to face potential price shocks?
The Plan will help make the EUs energy system more resilient to external price shocks with an increased share of home-grown renewables, more integrated markets, and better-supervised gas markets.
What are the benefits of completing the Energy Union and what is the Commission going to do to achieve it?
The EU has built a strong, interconnected energy market, but it is not yet a genuine Energy Union. EU energy costs remain comparatively high, posing a real risk of de-industrialization and a critical threat to the economy.