According to Reuters, cited by Euronews, the European Commission’s draft proposal outlines measures to curb electricity bills. Its publication is scheduled for April 22
European natural gas prices have risen more than 70% since the conflict began. Since wholesale electricity prices in Europe are still dependent on the cost of generating electricity from gas-fired power plants, the jump in gas prices since the start of the conflict has had a direct impact on electricity bills.
Gap between electricity and fossil fuel prices
According to Eurostat, at the beginning of 2025, the average electricity price for households in the EU was around €0.29 per kWh, while the average residential gas price was only €0.11 per kWh.
This gap is not accidental. Part of the reason for the high electricity taxes is that they are used to finance renewable energy and environmental policies.
Historically lower gas prices have also been designed to keep fossil fuel-dependent heating and transportation costs affordable.
But as these industries increasingly shift to electricity, critics argue that this system actually inhibits the transition to cleaner energy.
Lower taxes on electricity are key to the green transition
The European Commission insists that lowering electricity taxes is a key tool to incentivize a shift away from fossil fuels.
However, EU rules governing electricity taxation have not been changed since 2003, and attempts to revise them have repeatedly led to deadlock. In November 2025, a tax reform proposal failed to get the necessary support from member states.
From next month, according to media reports, the Commission intends to propose changes to EU tax law to make electricity taxation lower than taxes on oil and gas.
To compensate for the revenue loss if these changes come into force, experts are calling for a tax on excess profits of fossil fuel companies.
