On 17 July 2026, the European Commission published a proposal to amend Regulation (EU) 2019/943, aiming to reduce electricity system costs, boost electrification and digitalisation, and lower bills for EU consumers and businesses. The proposal, now before the Council, redesigns network charges to incentivise flexibility and smart grids, mandates a rapid rollout of smart meters, and aligns electricity taxation below that of natural gas.
The document, dated 17 July 2026 and scheduled for Council discussion on 22 July 2026, introduces several key measures. Network charges must encourage system operators to use flexibility, smart grids, and non-wire solutions, while grid users are pushed to shift consumption to cheaper, system-friendly times and locations. Special cost-reflective network charge regimes may apply to energy-intensive industries and data centres, with safeguards for households and SMEs. On smart meters, at least 50% of final customers in each member state must have them by 2030, rising to 75% by 2033; states below 30% deployment at entry into force get a limited extension for the 50% target. Common smart grid indicators and a framework for secure electricity grid data re-use will be developed. Electricity taxation must be lower than natural gas taxation, and energy-intensive industries may receive further reduced electricity taxes. In grid congestion, national regulatory authorities may prioritise connection requests based on maturity, progress, congestion impact, or economic, social, or environmental criteria, using transparent and non-discriminatory rules. The proposal impacts several stakeholders. EU consumers and households stand to benefit from lower electricity bills through reduced network charges and smart meter-enabled savings, but may face upfront costs for meter installation passed on by utilities. Energy-intensive industries and data centres gain potential tax breaks and tailored network charges, improving competitiveness, though smaller businesses and SMEs may see less favourable treatment. EU electricity system operators and grid companies face new obligations to adopt flexibility and smart grid solutions, increasing operational complexity and investment needs. National regulatory authorities gain new powers to prioritise grid connections and set cost-reflective charges, but must balance industrial interests with household protection. The Council is scheduled to examine the proposal on 22 July 2026, with the European Parliament to follow under the ordinary legislative procedure. The proposal represents a significant shift in EU electricity market design, aiming to align regulatory incentives with electrification and digitalisation goals while addressing consumer cost concerns.