The EU seeks to ease pressure on industry due to energy prices

The European Union is seeking to ease pressure on industries affected by high energy prices, Reuters reports, citing a relevant document.

The European Commission promises to present options for consideration by the bloc’s leaders at the summit on March 19. The EC document, prepared for a meeting of European commissioners at the end of last week, shows that the bloc is exploring short-term measures to help the most affected regions and sectors without undermining its long-term climate policy aimed at transitioning to cheaper, low-carbon energy.

Possible areas for short-term measures include network tariffs, national taxes and levies, and carbon emissions costs. The document notes that governments are not making sufficient use of existing tools to reduce companies’ electricity bills.

If energy supplies are disrupted, Brussels must be prepared to introduce measures to encourage consumers to use less energy, as was done in 2022.

The EU is seeking solutions after companies warned, even before the escalation of the conflict in the Middle East, that they could not compete with rivals in China and the US.

The EC document notes that any proposal for legislative changes will not yield immediate results. Therefore, a transitional solution may be needed to reduce energy prices over the next 2-5 years, until the clean transition alleviates this pressure, as is already being seen in some regions of Europe.

Earlier, an alliance of energy-intensive industries called on the EC to ensure that the Electrification Action Plan, which is expected to be published in May, takes into account a number of priorities, including setting a competitive benchmark of €50/MWh for total electricity costs for industry.