The European Union is working on a strategic plan against high bill prices. There are two main objectives: EU countries will have to tax electricity “more favorably than natural gas” and reform network charges to reduce costs. Network charges, also called system charges, are the mandatory costs applied to the bill to finance activities of general interest: they represent approximately 15%-25% of the total amount of the electricity bill and do not depend on the supplier chosen.
The European Union plan will flow into a regulation that the Commission will present this summer, in the second half of July, following up on the “Accelerate Eu” plan introduced to deal with the energy crisis of recent months. All within a broader framework that includes the recent European opening to being able to exclude from the deficit investment expenses for electrification and energy transition up to 0.6% of GDP in the three-year period 2026-2028.
An initial response welcomed by Giorgia Meloni, during a call on competitiveness with other EU leaders and the President of the European Commission, Ursula von der Leyen, but deemed not sufficient. There is “the need for an extraordinary effort, both at a national and European level, to counter the short and medium term effects of the energy crisis”, reiterated the Prime Minister.
Electricity cheaper than gas
In the Brussels plan, the governments of individual EU countries will have to guarantee that electricity remains fiscally more convenient than gas, while maintaining the right to set their own rates. The declared objective is to reduce the dependence on gas, responsible for the mechanism of formation of the price of electricity and the high bills that are recorded above all in Italy, compared to countries where renewables are much more developed.
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Increase smart meters
Not only that, because the EU executive also aims to encourage consumption during the hours when energy costs less, setting the objective of equipping at least 50% of users with smart meters by 2030 and 65% by 2033. These are new generation electronic devices that measure electricity consumption in real time. They replace old mechanical and electronic meters, offering automatic two-way communication between your home and the network distributor, and can also be managed remotely.
Also called “smart meters” or 2G meters, they detect consumption every 15 minutes and send the data automatically to the supplier (remote reading), guaranteeing bills based exclusively on real consumption. Detailed data helps to better understand habits, allowing you to optimize costs, avoid waste and choose the most convenient time slots.
Charges and final consumption
As mentioned at the beginning, Brussels also wants to intervene on network charges, which represent around a quarter of the average bill, introducing tariffs linked to times of use and criteria to measure the efficiency of operators. We are then working on the possibility of also using European cohesion funds to support investments in electricity networks.
The regulation in question is expected on July 22, as part of a broader package that also includes an action plan for electrification, to achieve the goal of increasing the share of electricity in final consumption from the current 23% to 32% by 2030. “The work starts at home, reducing energy costs and simplifying life for businesses across Europe. But it doesn’t end there. Imbalances and overcapacities in global trade pose challenges. We will address them directly to the European Council,” said the President of the European Commission, Ursula von der Leyen.