On 10 March, the European Commission published the Citizens Energy Package, an initiative building on the Clean Industrial Deal and the Action Plan for Affordable Energy, aimed at lowering energy bills, strengthening consumer protection, and tackling energy poverty. While its focus on electrification and strengthening energy independence is a positive step, it misses an opportunity to more decisively address energy taxation by providing concrete recommendations or guidelines for Member States.
The Citizens Energy Package places electrification at the centre of Europe’s independence, sustainability, and competitiveness, recognising it as a key tool to deliver lower and more stable prices over time. It encourages Member States to reduce levies and taxes on electricity, a recommendation highlighted by European Commission President Ursula von der Leyen during her presentation of the Package at the European Parliament.
While this sends a positive signal, it remains a reminder of the tools already available to Member States. The Commission could have taken a stronger stance by issuing more concrete guidance to address the persistent imbalance between electricity and fossil fuels.
The Package also highlights the critical role of clean electrification in Europe’s resilience and supports the development of energy communities. This is particularly relevant in today’s geopolitical context, where reducing reliance on imported fossil fuels is a strategic priority for the EU. The Commission’s intention to provide guidance to “unlock the potential of energy communities and self-consumption” is a welcome step towards greater energy independence.
As efforts to strengthen Europe’s energy system continue, the contribution of electrical contractors to resilience and preparedness should also be further recognised in future initiatives.
Looking ahead to the Electrification Action Plan
The Citizens Energy Package sends a positive signal by placing electrification at the centre and recognising the importance of lowering electricity taxes, supporting clean technologies, and promoting energy communities. However, further fiscal measures will be needed to address the persistent imbalance between electricity and fossil fuels and to fully incentivise electrification.
The upcoming Electrification Action Plan will be a key opportunity to build on this momentum by ensuring that policy frameworks actively support electrification. This includes making the 2026 revision of the Primary Energy Factor (PEF) a true enabler for electrification, committing to clear electrification targets such as the 32% KPI by 2030, maintaining regulatory stability, and addressing labour shortages by supporting a skilled workforce.
