The EU is considering short-term measures to reduce industrial energy costs
The European Commission is exploring possible short-term measures aimed at reducing energy costs for the industry, according to an internal document seen by Reuters.
The analysis focuses on several cost components of industrial electricity prices, including electricity taxes, network charges, and carbon-related costs, as policy makers look for ways to increase the competitiveness of European producers.
High energy prices reduce the competitiveness of industry
European manufacturers have repeatedly warned that rising energy prices are undermining their ability to compete with producers in large industrial countries such as China and the United States.
The problem has become more urgent after the recent increase in oil and gas prices related to the conflict between the United States, Israel and Iran, which has further increased pressure on global energy markets.
Policy proposals are expected before the March EU summit.
European Commission President Ursula von der Leyen has promised to present possible policy options ahead of the European Council summit scheduled for March 19.
Discussions between EU leaders are expected to focus on balancing immediate measures to support industry with the bloc's long-term climate goals.
Network charges and carbon dioxide emissions costs are being considered
According to information prepared for the European commissioners, Brussels evaluates various components of energy bills for industrial enterprises. Network payments account for approximately 18% of electricity costs for industrial enterprises, while government taxes, fees, and carbon dioxide emissions collectively account for approximately 11% of electricity costs. Officials believe that targeted adjustments in these areas can help reduce price pressures on energy-intensive industries in the short term.
The Commission also noted that EU member states are not making full use of existing mechanisms that could reduce energy costs for companies. These include government assistance schemes designed to compensate firms for indirect carbon costs under the EU emissions trading system, as well as long-term electricity supply agreements such as CFDs that can ensure price stability for industrial consumers.
Demand reduction measures remain a possible option.
In addition, policy makers can