Leaders across the European Union are urging the European Commission to present concrete plans to lower electricity bills for households and industries as energy costs remain stubbornly high across the bloc, according to Euro News.
According to an internal document reviewed by Euronews, EU leaders want the Commission to quickly propose short-term measures that could reduce electricity prices while also reviewing key parts of the bloc’s energy policy.
The request comes at a time of rising global energy tensions. Oil prices recently climbed above $114 per barrel for the first time since 2022, partly due to growing concerns over instability linked to the conflict involving Iran and fears that oil production and shipping routes in the Middle East could be disrupted.
Even before the latest geopolitical tensions, several EU governments had warned that high electricity and carbon costs were putting pressure on European industries. Officials fear that companies could lose competitiveness compared to businesses in regions where energy costs are lower.
One of the key areas under review is the EU’s carbon market, known as the European Union Emissions Trading System (ETS). The system requires companies to pay for the carbon pollution they produce, encouraging them to reduce emissions and invest in cleaner technologies.
EU leaders have asked the Commission to conduct a full review of the system by July 2026. The goal is to examine whether changes could reduce price volatility in the carbon market while still keeping strong incentives for industries to cut emissions.
Some EU countries are cautious about making major changes, arguing that the carbon market plays a vital role in Europe’s climate policy. However, others believe reforms are needed to prevent rising carbon prices from pushing electricity costs even higher.
Energy analyst Alessandro Armenia said the structure of the system can amplify price swings because companies settle their carbon credits at the end of each year. He suggested that the EU could eventually move toward a system that rewards companies for cutting emissions rather than only penalizing those that fail to do so.
At the same time, EU governments are calling for faster investment in energy infrastructure, especially electricity grids and cross-border connections. Expanding these networks would allow renewable energy produced across the bloc to flow more freely and efficiently.
EU leaders hope lawmakers will reach an agreement by 2026 to accelerate grid expansion and simplify permitting procedures for new energy projects.
Dan Jørgensen stressed that reducing Europe’s reliance on imported fossil fuels remains crucial. By expanding renewable and low-carbon energy sources, he said, the EU can strengthen energy security while delivering cleaner and more affordable power in the long run.
In the short term, officials are also considering reviewing energy-related taxes and network charges to ease pressure on industries struggling with high power costs.
