The European Commission wants to limit the price gap between electricity and gas for households. According to a new proposal, electricity should not cost more than 2.5 times the price of gas by 2030. The plan is part of a broader reform of the EU emissions trading system and an electrification roadmap.
Currently, electricity in the European Union is on average almost three times more expensive than natural gas, according to Eurostat data. This high cost is seen as a major barrier to replacing fossil fuels with electric solutions such as heat pumps or industrial electric furnaces. The European Commission argues that without reducing the price of electricity, the green transition will stall.
The proposed changes are part of a comprehensive package published by the Commission. It includes a reform of the Emissions Trading System (ETS) to make it more effective in driving decarbonisation, as well as an Electrification Action Plan. The goal is to ensure that both businesses and households actually shift from fossil fuels to electricity.
The problem is well documented. Eurostat figures show that in 2025, EU households paid on average €0.25 per kWh for electricity and €0.08 per kWh for gas – a ratio of more than 3:1. The Commission aims to bring this down to 2.5:1 by 2030 through a combination of measures targeting the non-energy components of electricity bills.
Barriers to electrification
The reform targets the structure of electricity bills. Taxes, network charges, and other fees currently inflate the final price significantly. In some member states, such levies account for up to 40% of the total bill. The Commission wants to redesign these components to make electricity more competitive. The target is explicit: by 2030, household electricity prices should not exceed 2.5 times the price of gas.
Halina Jagielska, an analyst at the Institute of Reform, said that the reform of grid tariffs is meant to lower bills and promote efficient use of the network. – Instruments such as preferential social leasing or reduced VAT on heat pumps, energy storage, and electric cars should help households cover the initial costs of electrification – she explained.
Empowering energy consumers
Anna Frączyk, a lawyer at Client Earth Foundation, added that electrification will only succeed if consumers become active market participants. – Therefore, alongside investment support, we need solutions that facilitate the development of citizen energy, especially energy communities – she said.
The Commission’s plan also includes measures to boost renewable energy deployment and improve grid infrastructure. Cheaper renewable electricity should create a virtuous cycle, driving down prices further and making electrification economically attractive. The proposed changes also aim to help industrial companies switch to electric processes by reducing the cost of electricity for large consumers through targeted tax relief and network tariff adjustments.
The Commission’s Electrification Action Plan also promotes the deployment of energy storage and smart grids. These technologies are essential to integrate variable renewable energy and to enable consumers to shift their consumption to cheaper hours, further reducing their bills.
Critics note that achieving the 2.5:1 ratio will be challenging, especially in countries like Poland where coal still dominates electricity generation. However, the Commission insists that the reform is necessary and feasible, pointing to the rapidly falling costs of renewables and the potential savings from smarter grid pricing.
Źródło: WNP.PL, Fot. Shutterstock
