(Updates with the European Commission's response in paragraphs 2-5.)
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.
In an email response to, a European Commission spokesperson said that the Commission is working with member states on targeted measures to address Europe's current energy crisis.
"The Commission stands ready to support any Member States that need, in the short term, to apply energy tax rates below the current EU minimum levels, while avoiding increasing fossil fuel demand and exacerbating imbalances of supply and demand," the spokesperson said.
The spokesperson also pointed to the Commission's AccelerateEU initiative, saying it "sets out measures to bring immediate relief to European households and industries, protect them from the fossil fuel energy crisis, while accelerating on the clean energy transition."
"In this context, the Commission will also present a legislative proposal on taxation in July, ensuring that electricity is taxed less than fossil fuels," the spokesperson said in the emailed response.
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, according to media reports.
Although national governments would continue setting their own tax rates, they would reportedly 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.