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- October 22, 20267°
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- October 22, 20267°
EU Prepares Tax Cuts and Smart Meter Initiative to Tackle Energy Crisis
The European Union is preparing a new package that includes adjustments to electricity taxes and grid modernization to reduce its dependency on external energy sources. The draft highlights tax support for industry, acceleration of electrification, and a target to equip at least half of households with smart meters by 2030.
The European Union is developing a new package focused on energy security. The draft regulation aims to reduce dependence on imported oil and natural gas, increase the share of domestic and renewable resources, and lower energy costs.
The package emphasizes measures to lower electricity prices within the Union and manage consumption more efficiently. It plans to keep minimum consumption taxes on electricity lower than those on natural gas, promoting faster electrification and encouraging the use of clean energy.
Tax Support for Industry on the Agenda
The draft also includes tax support for industrial enterprises struggling with high energy costs. The regulation aims to ease the burden on companies that have postponed investment plans or face pressure to shut down production facilities due to energy expenses.
Energy imports still represent a significant share of the EU economy. According to the draft, about 57% of the Union's total energy consumption is still met by imported fossil fuels.
Calculations by the European Commission reveal that rising energy prices, driven by geopolitical tensions originating from Iran, add approximately 500 million euros daily in extra import costs to the EU economy. Prepared during a period of heightened Middle East tensions impacting the energy agenda, the package stands out as part of efforts to reduce this pressure.
Grid Modernization and Expansion of Smart Meters
The new package will include a comprehensive electrification roadmap featuring the modernization of electricity grids. It aims to reduce restrictions caused by grid inadequacies during periods of high renewable energy production.
The Commission places special emphasis on expanding smart meters to enable consumers to adjust their energy use according to system needs. Accordingly, EU member states will be required to equip at least 50% of consumers with smart meters by 2030.
The plan envisions increasing this rate to 65% by 2033. The Commission believes shifting electricity demand to hours with lower prices will reduce system costs and enable more efficient use of renewable resources.
Despite accelerated wind and solar investments in recent years, the cost pressure linked to energy imports remains a key concern. The prepared package is seen as a new step that brings together efforts to reduce dependency, strengthen the grid, and make consumption smarter under one umbrella.
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