EU energy ministers called for more room to set national electricity network charges on Oct. 29, while a Council Presidency note said many member states disputed the legal basis for a Commission tax cap intended to lower power costs.
The European Commission’s July 17 proposal would amend the EU’s electricity-market regulation. It would keep electricity excise tax at or below the rate on natural gas. The Commission says the cap is intended to lower electricity costs and encourage electrification.
Separate provisions address how grid-use charges are calculated. The proposal would let the Commission set a common tariff framework and calculation approach through delegated acts. The Council Presidency says the Commission wants consistent rules to make charges more transparent and easier to compare. Ministers asked for greater latitude to account for national conditions.
The tax dispute concerns which treaty authority applies and how the measure would be approved. The Commission cites Article 194(2) of the Treaty on the Functioning of the European Union and the ordinary legislative procedure. In an Oct. 16 note, the Council Presidency said many member states favored Article 113, the treaty provision for tax measures, which requires unanimous Council approval.
The Commission estimates grid fees made up 24% to 29% of household electricity bills on average in recent years. It also points to rising demand and grid investment needs as reasons tariff design matters to electrification costs. The Council reported broad support among ministers for reducing energy-system costs and getting more use from existing grid infrastructure.
Ireland’s Minister for Climate, Energy and the Environment Darragh O’Brien said the presidency was focused on “secure, sustainable and affordable energy,” alongside faster electrification, stronger grid links and resilience. Officials are due to continue work on the proposal before ministers meet Dec. 10; the Council’s stated goal is to reach a general approach at that meeting.
