The European Union is weighing changes to energy taxes and network charges, including a proposal to give electricity a tax advantage over natural gas, as it seeks to lower household power bills, according to multiple media reports on Monday.
Rising oil and gas prices, linked to disruptions in global energy markets following the conflict in Iran, have intensified efforts to reduce Europe's dependence on imported fossil fuels.
To accelerate the shift away from fossil fuels, the draft proposal would require member states to tax electricity at a lower rate than natural gas, a move the European Commission believes would support wider adoption of electric vehicles and heat pumps.
Although national governments would continue setting their own tax rates, they would need to follow an overarching framework that favors electricity over gas.
Under the proposal, consumers would receive incentives to shift electricity consumption to periods when energy is cheaper and more readily available on the grid.
To help households and businesses take advantage of lower-cost electricity during off-peak hours, the European Union would target smart meter installation for 50% of electricity customers by 2030, the reports said.
Representing roughly one-quarter of a typical household power bill, network charges are also under review, although the tax measures still require approval from European Union lawmakers and a reinforced majority of member states amid reported opposition from some governments.
The European Commission did not immediately respond to' request for comment.