Energy prices and costs in Europe

This communication is made up of a report on energy prices and costs in Europe and recommendations as to how to keep energy bills under control.

ACT

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Energy prices and costs in Europe (COM(2014) 21 final of 22 January 2014 - not published in the Official Journal).

SUMMARY

The European Commission’s in-depth analysis of energy prices and costs in Europe is designed to help policymakers understand the context and the impact of recent price rises on consumers and the political implications.

Energy price rises are a major political concern. They create additional cost burdens on hard-pressed households and industry and affect Europe’s global competitiveness.

The aim of the report is to use it to help the EU develop an ambitious but credible climate and energy 2030 framework that is cost effective and does not undermine European competitiveness.

The Commission proposes a number of courses of action with a view to ensuring that Europe’s citizens and industry can deal effectively with the energy price challenge and that the EU can maintain its competitiveness, today, to 2030 and beyond.

The main proposals to keep energy bills in check include the following.

• EU countries need to complete the EU’s internal energy market in order to ensure that investments can be made in an efficient and competitive way.
• Household consumers and industry, particularly small and medium-sized businesses, should explore the opportunity to lower their prices by switching to cheaper energy suppliers.
• More needs to be done to increase energy efficiency and help consumers lower their consumption; European households and industry can keep their bills down by further improving their energy efficiency; more attention to energy efficiency in product design, new technologies and consumer behaviour can also help save energy and money.
• To take advantage of the internal market and the scope for cost reductions, EU countries need to further develop European energy infrastructure, diversify energy supplies and supply routes and ensure that, in their negotiations with major energy partners, they speak with a single European voice.
• The EU and EU countries need to further assess and compare energy network costs and practices.

last update 01.08.2014