Affordable Energy Action Plan

The European Commission has presented an ambitious Action Plan for Affordable Energy. This is part of a broader package of measures such as the Clean Industry Deal to stimulate the European economy and respond to protectionism from the United States. With this plan, the European Commission aims to lower energy costs for citizens and companies in Europe, promote energy savings, and ensure a better energy infrastructure.

With the Action Plan, the European Commission aims to create a true Energy-Union to strengthen European competitiveness, ensure better energy security, promote the decarbonisation of companies, and ensure a just (niet fair: eerlijk?) energy transition. European citizens and businesses are facing excessively high energy prices. Europe is still too dependent on imported fossil fuels. Europe wants to continue the transition to a sustainable energy supply.

Key pillars of the Action Plan

1. Action Package 1 - Reducing energy costs
2. Action Package 2 – Improving energy-infrastructure
3. Promoting flexibility in the energy system
4. Improvement of the gas markets
5. Encourage energy savings
6. Completion of the Energy-Union
7. Preparing for Energy Crises

1. Action Package 1 - Reducing energy costs

The European Commission aims to ensure more efficient network rates with the Action Plan for Affordable Energy. The costs for managing electricity grids must be reduced, and it is necessary to encourage investments\ in electricity grids. This means that methodologies must be developed for regulators to set rates. The rate regulation must promote flexibility and optimize the use of cheaper energy sources.
The European Commission wants to ensure that member states levy less tax on electricity and remove non-energy-related costs from energy bills. For this, the European Commission wants to possibly adjust the Energy Taxation Directive and lower VAT rates on electricity.
The European Commission aims to promote competition among suppliers by enabling consumers to switch energy suppliers more easily. Furthermore, the European Commission wants to tackle energy poverty by promoting energy savings and stimulating energy cooperatives.

2. Action Package 2 – Improving energy-infrastructure

The European Commission aims to shorten lead times for obtaining the necessary permits for new energy projects, such as wind- and solar-energy. The European Commission believes that member states should take steps to digitalize permit processes and strengthen the capacity of national permit authorities.
Member states must expand their energy grids and the interconnectors between member states. The European Commission believes it necessary to modernize and digitalize electricity grids. Furthermore, cross-border infrastructure must be improved in order to reduce price differences between member states.

3. Promoting flexibility in the energy system

It is necessary to encourage energy storage and demand response. This should lead to a better balance of supply and demand. Price fluctuations must be reduced. There should be an accelerated rollout of smart meters to give consumers better insight into their energy consumption and enable them to adjust their consumption to the availability of cheap energy.

4. Improvement of the gas markets

There must be a well-functioning gas market through enhanced supervision and cooperation between energy and financial regulators. The European Commission wants to set up a Gas Market Task Force tasked with monitoring gas markets and intervening where necessary. Member states must jointly purchase energy to negotiate better prices and conditions with gas suppliers. This can be done through demand aggregation and joint purchasing strategies.

5. Encourage energy savings

The European Commission aims to promote the market for energy-saving services to help companies and households lower their energy bills. This includes improving access to financing and setting up an EU guarantee scheme for energy-saving projects. The European Commission wants to update EU energy labeling and Ecodesign rules.

6. Completion of the Energy-Union

The European Commission aims to fully commit to completing the Energy-Union. This means that the European Commission wants to promote electrification and the integration of renewable energy sources. In this way, the European Commission aims to reduce Europe's dependence on fossil fuels. The European Commission will also present an Electrification Action Plan and a Heating and Cooling Strategy. The European Commission wants to enhance cooperation in the Energy-Union and improve coordination between member states. This includes setting up an Energy-Union Task Force and publishing a Whitebook for the integration of the electricity markets.

7. Preparing for Energy Crises

There must be a strong regulatory framework to ensure the security of the energy supply to improve the resilience of the energy system and limit price fluctuations. This includes revising the current EU regulatory framework for energy security. Measures must be taken to reduce demand during peak hours to prevent price increases. This includes introducing incentives for consumers to reduce their energy consumption during peak hours.