The European Commission is evaluating short-term policy options aimed at lowering energy costs for industrial companies, according to an internal document reviewed by Reuters.
The analysis focuses on key components of industrial electricity pricing, including energy taxes, network charges and carbon-related costs, as policymakers look for ways to improve the competitiveness of European manufacturers.
European industries have repeatedly warned that high energy prices are undermining their ability to compete with producers in major economies such as China and the United States.
The issue has become more urgent following a recent increase in global oil and gas prices, driven in part by geopolitical tensions involving the United States, Israel and Iran, which have added further pressure to energy markets.
European Commission President Ursula von der Leyen is expected to present potential policy proposals ahead of a European Council summit scheduled for March 19.
Discussions among EU leaders are likely to focus on balancing short-term support for industry with the bloc’s long-term climate and decarbonization objectives.
According to the Commission’s internal briefing, network charges account for around 18 percent of industrial electricity costs, while national taxes, levies and carbon-related expenses represent roughly 11 percent.
Officials believe that targeted adjustments in these areas could help ease cost pressures on energy-intensive industries in the near term.
The Commission also noted that many EU member states are not fully using existing mechanisms designed to lower energy costs for companies. These include state aid schemes that compensate firms for indirect carbon costs under the EU Emissions Trading System, as well as long-term electricity supply contracts such as contracts for difference, which can provide greater price stability.
In addition, policymakers may consider demand reduction measures if energy supply disruptions intensify. Similar policies were implemented in 2022, when Russian gas deliveries to Europe declined sharply, prompting both industries and households to reduce energy consumption.
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