The EC will present a range of measures to member states next week to reduce demand, improve energy efficiency and help transition to clean energy, according to a document seen by the Financial Times.
These measures are intended to provide "immediate relief" from high energy prices, SEEbiz reports.
The recommendations build on measures implemented during the previous energy crisis caused by Russia's invasion of Ukraine. They are part of an effort to reduce dependence on fossil fuels and encourage the use of green energy.
The Commission said in a draft communication that companies should be encouraged to provide at least one mandatory day of teleworking where possible. It also recommended subsidising public transport and reducing VAT on heat pumps, boilers and solar panels.
Brussels will also set “ambitious” but as-yet-unpublished targets for electrification, according to a document that contains numerous gaps and has not yet been finalized.
To achieve electrification goals, Brussels will help member states develop “social leasing schemes for clean and efficient technologies,” including heat pumps, electric cars and small batteries.
Several officials stressed that the measures are recommendations, not binding instructions.
“If we face energy shortages, it is our responsibility to ensure that citizens know what they can do to reduce their consumption,” said one EU official.
The commission issued similar advice in 2022, when it encouraged companies and consumers to lower the temperature on their thermostats by one degree.
Recommendations to reduce oil and gas consumption are part of a broader package to address high energy costs, including electrification of the power system and greater coordination in fossil fuel procurement. Other measures, including addressing jet fuel shortages, have yet to be developed, the document said.
The communication, which will be presented to EU leaders next week, is largely non-binding. However, the Commission will propose two pieces of legislation to cut costs. These include legislation to adjust electricity market rules to reduce the cost of electricity transmission.
This would involve monitoring the profitability of different network operators and making recommendations on fees for heavy industry.
The commission will also seek to amend the directive to ensure that electricity is taxed at lower rates than fossil fuels. A more ambitious proposal was rejected last year, but officials are optimistic that the energy crisis will spur debate on the measure.
The document states that member states will have the flexibility to introduce a zero rate of electricity tax for energy-intensive industries.
The latest document also states that the EC will help member states design price caps and income support programs, as well as assess a windfall profit tax, which fell short of some member states' demands for such an EU-wide tax.
