The Action Plan for Affordable Energy lays down actions for decreasing energy costs for citizens, businesses, industry and communities across the EU, considering the needs of all people, including vulnerable groups. It presents measures to lower energy bills in the short term, while accelerating the implementation of much-needed cost-saving structural reforms and strengthening energy systems to mitigate future price shocks. The Plan is based on 4 pillars: (i) lowering energy costs for all, (ii) completing the Energy Union; (iii) attracting investments and ensuring delivery; and (iv) preparedness for potential energy crises. The Action Plan lays down eight actions for affordable energy, many of which will be delivered already in 2025, focusing on the actions that bring immediate relief for energy consumers. In order to make electricity bills more affordable, the Commission will put forward a methodology to ensure that network charges incentivize the most efficient use of the grid, lowering energy system costs and total new grid investment needs, and will make recommendations to Member States to lower national taxes on electricity, immediately reducing energy bills. The cost of electricity supply will be reduced through full implementation of existing EU electricity legislation, and additional actions to promote the uptake of long-term electricity supply contracts, accelerate permitting procedures for key clean energy projects, reinforce grids and boost flexibility. The functioning of gas markets will be improved through full regulatory oversight and close cooperation between energy and financial regulators. The Action Plan stresses on the impacts of energy efficiency in terms of affordable energy in industry and households. The Commission will support market actors who provide energy efficiency solutions for businesses through the European Energy Efficiency Financing Coalition and update its rules on energy labelling and ecodesign for products. The genuine Energy Union will be completed to enhance competitiveness, strengthen energy security, drive decarbonization, and ensure a fair transition, ultimately passing the benefits of reduced prices on to consumers. An Energy Union Task Force will be established to enhance coordination across the Energy Union and strengthen governance of the electricity system. A tripartite contract will be established to ensure affordable energy for Europe’s industry. This will help counteracting high energy prices and market uncertainty, while creating a favourable investment climate, facilitating a competitive EU industrial sector, and ensuring the retention and creation of quality jobs. This Action Plan sets out measures to increase resilience to withstand potential supply disruptions resulting from geopolitical tensions, cyberattacks, deliberate attacks or extreme weather events, which threaten affordability. EU energy supplies will be guaranteed for economic resilience, continued access to affordable energy and price stability, in the face of any possible future energy crisis. The affordability of energy will be protected in the event of an energy price crisis. The Commission will guide Member States on the application of measures that incentivize consumers to reduce demand at certain times and will work with transmission system operators and national regulatory authorities to temporarily increase electricity flows in cross-border interconnectors, in certain situations.
2025-02-26