EU Drafts Tax Changes to Lower Consumer Electricity Bills
The EU plans to tax electricity at a lower rate than gas to reduce consumer bills. The draft proposal aims to accelerate the shift away from fossil fuels.
The European Commission is proposing a mandate to tax electricity at a lower rate than natural gas to reduce consumer power bills. This draft responds to price spikes in oil and gas following the Iran war. The shift aims to accelerate the transition to electric vehicles and heat pumps by improving their price competitiveness.
The proposal requires national governments to prioritize lower power taxes over fossil fuels. It targets a reduction in the reliance on imported energy sources. The European Commission wrote in the draft that fast action is needed to decrease bills and fossil fuel dependence.
