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The European Commission is reported to prepare a package of measures aimed at making electricity more affordable and attractive compared to fossil fuels, as part of its broader efforts to strengthen Europe’s competitiveness, energy security, and decarbonisation objectives. The initiative comes amid renewed energy price pressure linked to the blockade of the Strait of Hormuz and Europe’s continued dependence on imported fossil fuels. In this context, the European Commission has argued that accelerating electrification can improve resilience, reduce exposure to geopolitical shocks, and strengthen the EU’s industrial competitiveness.

The proposal follows the publication of the Commission’s April 2026 Communication on AccelerateEU (CLECAT Newsletter 2026/16 refers), which identified electrification as one of the key pillars of the EU’s energy strategy and called for measures to remove barriers to the wider use of clean electricity across transport, buildings, and heating. With its initiative, the Commission examines ways to ensure that electricity is taxed more favourably than gas and other fossil fuels, while reducing the overall cost burden on electricity consumers.

Rather than reopening the revision of the Energy Taxation Directive, which would require unanimous agreement among Member States and has faced difficulties in the past, the Commission is exploring alternative approaches through electricity market legislation. The draft measures would also seek to address network charges, which account for a significant share of electricity bills, and provide greater flexibility for Member States to reduce electricity taxes for energy-intensive industries and vulnerable consumers. Reportedly, the plan foresees smart meter coverage to reach 50% across the EU by 2030 and 65% by 2033. The Commission is expected to present the draft as part of a larger legislative package on 22 July 2026.