In a letter sent today to the EU Energy Ministers, who are meeting in Luxembourg, European Commissioner Dan Jørgensen notes that “prices remain too high compared to major competitors,” considering this “a burden,” especially for vulnerable consumers.
“No single instrument will be sufficient to solve the price issues, which is why we need to act together on seven fronts,” adds the European Commissioner.
One proposal from Commissioner Jørgensen is the reduction of taxes, which currently account for up to a third of the energy bill: “Reducing them has a real and immediate impact, particularly for energy-intensive industries and vulnerable consumers. The Commission will provide guidance and support on how member states can proceed in this direction, which I strongly encourage you to explore.”
Furthermore, Jørgensen states, “interconnections are crucial to ensure everyone can access energy at the best cost.”
“I urge you to improve interconnection with your neighbors. The Commission will support this effort through the Grid package and the Energy Highways initiative,” he adds.
The European Commission proposes creating energy highways to increase interconnection, particularly for electricity, within the EU, expecting that Portugal and Spain will benefit from such connections due to their current energy isolation.
The Portuguese Government has advocated for an increase in Portugal’s energy interconnection with the rest of the EU to 15% by 2030 through the construction of more interconnections.
The enhancement of energy interconnections between Portugal, Spain, and the EU has been under discussion for several years, hindered by France’s skepticism, despite being crucial for increasing energy security, reducing dependency on fossil fuels, lowering costs, and facilitating the transition to renewable energy.
The European Commission shares Portugal’s view on the need to build more energy interconnections within the EU, particularly between the Iberian Peninsula and the rest of the bloc, and will advance with an action plan in the fall while attempting dialogue with France.
In today’s letter to the respective ministers, the European Commissioner suggests that countries use the flexibility provided to support the energy transition by advancing state aid, reallocating cohesion fund expenses to areas like storage, and benefiting from European Investment Bank programs.
Dan Jørgensen also calls for faster licensing processes for renewable energy development and joint initiatives such as gas procurement.
“These actions represent a shared responsibility between member states and the Commission,” he concludes.
