The European Commission wants to limit the price gap between electricity and gas for households, aiming to make electrification economically viable. According to a new proposal, electricity should cost no more than 2.5 times as much as gas by 2030. The plan includes reforms to grid fees, taxes, and support for clean energy investments.
Currently, electricity in the European Union is on average nearly three times more expensive than gas, according to Eurostat. This gap undermines the economic case for switching to electric solutions such as heat pumps or industrial electric furnaces. The Commission argues that without closing this gap, the transition away from fossil fuels will stall.
Addressing the cost barrier
The proposed reform targets the components that inflate electricity bills: taxes, grid charges, and other fees. The goal is to reduce the overall price of electricity so that it becomes a competitive alternative to gas. The Commission also introduced a broader Electrification Plan alongside changes to the EU emissions trading system.
Among the specific measures are preferential social leasing schemes, lower VAT rates for heat pumps, energy storage systems, and electric vehicles. These are designed to help households overcome the high upfront costs of electrification investments.
Reform of grid fees and active consumers
– The reform of grid fees is intended to lower bills and promote efficient use of the network. Instruments such as preferential social leasing or reduced VAT for heat pumps, energy storage, and electric vehicles should help households manage the initial costs of electrification – said Halina Jagielska, an analyst at the Institute of Reform.
– Electrification will be effective only if energy consumers become active market participants. That is why, alongside investment support, we need solutions that facilitate the development of citizen energy, especially energy communities – added Anna Frączyk, a lawyer at Client Earth Foundation.
Źródło: WNP.PL, Fot. Shutterstock
