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- October 13, 202618°
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- October 13, 202618°
EU Prepares Tax Cuts and Smart Meter Initiative to Tackle Energy Crisis
The European Union is preparing a new package that includes adjustments to electricity taxes and grid modernization to reduce its dependence on external energy sources. The draft highlights tax support for industry, acceleration of electrification, and a target to equip at least half of households with smart meters by 2030.
The European Union is preparing a new package that refocuses on energy security. The draft regulation aims to reduce dependence on imported oil and natural gas, increase the share of domestic and renewable resources, and lower energy costs.
The package emphasizes steps to lower electricity prices within the Union and manage consumption more efficiently. It plans to keep minimum consumption taxes on electricity lower than those on natural gas, aiming to accelerate electrification and promote clean energy use.
Tax support for industry on the agenda
The draft also includes tax support for industrial enterprises struggling with high energy costs. The regulation seeks to ease the burden on companies that have postponed investment plans or face pressure to close production facilities due to energy expenses.
Energy imports still represent a significant share of the EU economy. According to the draft, about 57% of the Union's total energy consumption is still met by imported fossil fuels.
Calculations by the European Commission reveal that geopolitical tensions originating from Iran have pushed energy prices up, adding approximately 500 million euros daily in extra import costs to the EU economy. Prepared amid escalating tensions in the Middle East, the package stands out as part of efforts to reduce this pressure.
Grids to be modernized, smart meters to become widespread
The new package will include a comprehensive electrification roadmap featuring the modernization of electricity grids. It aims to reduce restrictions caused by grid inadequacies during periods of high renewable energy production.
The Commission places special emphasis on expanding smart meter deployment so consumers can adjust their energy use according to system needs. Accordingly, EU member states will be required to equip at least 50% of consumers with smart meters by 2030.
The plan envisions increasing this rate to 65% by 2033. The Commission believes shifting electricity demand to hours with lower prices will reduce system costs and enable more efficient use of renewable resources.
Despite accelerated wind and solar investments in recent years, cost pressures linked to energy imports remain a concern for the Union. The prepared package is seen as a new step that brings together efforts to reduce this dependency, strengthen the grid, and make consumption smarter under one umbrella.
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