European Commission declares Action Plan to support European consumers and businesses

The European Union stated that it is taking action to increase competitiveness, accelerate decarbonization and ensure energy security. The Action Plan presented by the Commission aims to reduce energy costs in the short term, complete the Energy Union, encourage investments and create a more resilient structure against possible crises.

According to the plan, EUR 45 billion in savings are targeted by 2025 and EUR 130 billion annually by 2030, while electricity market reforms, renewable energy investments and grid integration are expected to reach a target of EUR 260 billion by 2040. The Commission proposed reducing taxes and network costs on electricity bills and making it easier for consumers to switch to more affordable energy suppliers, while encouraging long-term supply contracts and limiting the impact of fluctuations in natural gas prices on electricity bills are also an important part of the plan.

EU targets to reduce electricity generation costs by accelerating the transition to renewable energy. In this regard, it is planned to shorten permitting processes and increase energy efficiency in wind, solar and energy infrastructure projects. Moreover, noting that high gas prices weaken the competitiveness of industry, the Commission will start negotiations to supply LNG at affordable prices by ensuring transparency in energy markets and using the collective purchasing power of EU countries.

EU Commission President Ursula von der Leyen stated: “We are lowering energy prices and increasing competition. By doubling down on renewable energy, we have significantly reduced energy prices in Europe. Now we are going one step further with the Affordable Energy Action Plan as part of our Clean Industrial Deal. With it, we will achieve more predictable prices, stronger connections across Europe and increased energy uptake. We will systematically remove the remaining barriers so that we can build a true Energy Union.”

The implementation of the Action Plan is expected to further integrate EU energy markets and create a strong protection against price movements.