The European Union is exploring short-term policy options to reduce energy cost pressures on industry, according to a European Commission document cited by Reuters.
The proposals are expected to be presented to EU leaders during the European Council summit scheduled for March 19.
According to the document, the Commission is examining temporary measures to support regions and sectors most affected by high electricity prices, while maintaining the bloc’s long-term climate transition strategy toward cleaner and more affordable energy.
Potential measures include adjustments to network tariffs, national energy taxes and levies, and carbon emissions costs.
The document also indicates that EU governments are not fully utilizing existing mechanisms that could already reduce electricity costs for companies.
Brussels is also considering contingency measures in case of energy supply disruptions, including programs encouraging reduced energy consumption, similar to those implemented during the 2022 European energy crisis.
Industrial groups have warned that European manufacturers face growing competitive pressure from companies in the United States and China due to significantly lower energy costs.
Because legislative reforms would take time to deliver results, policymakers are considering transitional solutions for the next two to five years, until the expansion of low-carbon energy reduces industrial electricity prices.
Energy-intensive industries have also called on the European Commission to ensure that the upcoming Electrification Action Plan, expected in May, establishes a competitive electricity price benchmark of around €50/MWh for industrial consumers.
VietnamSteel by Hoa Sen Group
