The European Commission is planning measures aimed at reducing the consumption of oil and gas and lowering electricity prices as part of its efforts to combat the effects of the energy crisis. These plans stem from a draft document expected to be presented next week, according to reporting from the “Handelsblatt”.
In this proposed document, the Commission advises its member states against cutting taxes on petrol and diesel. Instead, it recommends boosting the promotion of public local transport, electricity, heat pumps, and electric cars to accelerate the dependency reduction away from oil and gas. According to the paper, the Commission intends to submit a legislative proposal by May, which would obligate EU member states to tax electricity at a lower rate compared to fossil fuels.
The package planned by the EU Commission also includes a list of immediately effective energy-saving measures and state aid. With these measures, the Commission aims to support social leasing models for heat pumps, electric cars, and batteries, advance geothermal projects using new guarantee instruments, and redirect unused EU funds more quickly into energy investments.
Furthermore, the Commission plans to adjust the production criteria for renewable hydrogen in June, because the ramp-up process has been slower than anticipated.
