A European Commission staff working document published on 17 July 2026 proposes amendments to Regulation (EU) 2019/943 aimed at reducing electricity system costs, fostering electrification and digitalisation, and lowering bills for EU consumers and businesses. The proposal, which accompanies a legislative draft, targets the EUR 600 billion in grid investments needed by 2030 and EUR 1.2 trillion by 2040, costs that are currently passed on to consumers through network charges. The document argues that network charges must be cost-reflective and incentivise efficient grid use, flexibility, and system-friendly behaviour by both operators and users.
The proposal introduces a minimum smart meter deployment trajectory, common smart grid indicators, and improved electricity grid data exchange to enhance grid efficiency and consumer savings. On taxation, it ensures electricity is not subject to a higher tax burden than gas, without harmonising tax rates or levels across member states. Measures also enable non-discriminatory and transparent prioritisation of grid connection requests to speed up electrification of transport, heating, and industry.
The initiative follows President Ursula von der Leyen's 19 March 2026 statement calling for concrete actions to lower electricity prices, and the European Council's subsequent endorsement of measures to reduce energy costs for households and businesses. The Commission's proposal now moves to the European Parliament and the Council for negotiation.
EU consumers and businesses stand to benefit from lower electricity bills through reduced network charges and fairer taxation, though the impact depends on national implementation. Grid operators face new obligations to deploy smart meters and share data, increasing operational costs but potentially enabling more efficient grid management. EU producers and industrial users may see faster grid connections for electrification projects, reducing administrative delays. National regulators will need to adjust tariff structures and tax policies, which could create administrative burdens and require coordination with fiscal authorities.