EU Revamps State Aid Rules to Tackle Surging Energy Costs
The European Commission will consult member countries this week on changes to state aid rules. Ursula von der Leyen announced the move after a meeting of Commission officials.
Toolkit and short-term measures
A toolkit will be published on April 22. It will include plans for filling gas storage and guidance on temporary measures.
The guidance will cover options to cut taxes on energy bills. It will also outline measures to reduce energy demand.
Demand-reduction actions
Demand-reduction schemes may focus on building renovation. They may also support renewal of industrial equipment.
These measures aim to lower consumption and ease pressure from surging energy costs.
State aid and regulatory changes
The Commission is preparing consultations on state aid changes to help member states respond rapidly. These changes target sectors hit hardest by the crisis.
Officials said revamped state aid rules would better align support with market realities.
Electricity grids and electrification push
Von der Leyen urged lawmakers and member countries to finish the EU grids package by early summer. The package aims to upgrade and expand the electricity network.
She said electrifying the economy is the long-term answer to high oil and gas prices. The Commission will set an EU-wide electrification target before summer.
Taxes, grid charges and upcoming proposals
The Commission is drafting a legislative proposal on electricity taxes and grid charges. That proposal is expected in May.
It will seek to adjust fiscal and network charges to support the energy transition.
ETS benchmarks and scheduled review
Updated benchmarks for the EU Emissions Trading System will be published soon. They will determine free carbon allowances for industrial sectors.
The planned review of the ETS remains on schedule for release in July. The review will reassess allocation and market rules.
Reporting and analysis by Filmogaz.com.
