The European Commission is set to outline new measures to ease pressure on households and businesses as Europe faces a new energy crisis linked to the conflict in Iran.
Plans due on Wednesday (22 April) focus on cutting electricity taxes and coordinating the refill of gas storage ahead of winter. Officials hope these steps will help stabilise supply and limit rising costs.
Draft proposals suggest the European Union will avoid more drastic actions for now, such as capping gas prices or taxing energy firms’ excess profits. These measures were used during 2022 when supplies from Russia fell sharply and prices hit record highs.
Instead, Brussels is looking to adjust tax rules to make electricity cheaper compared with oil and gas. Governments may also be given more freedom to reduce electricity taxes for industry, potentially to zero in some cases.
The Commission is also expected to coordinate how countries refill gas storage in the coming months. It will issue guidance on how to manage possible shortages of jet fuel, which airlines warn could appear within weeks.
The renewed pressure comes as tensions in the Middle East disrupt key energy routes. The Strait of Hormuz, a major pathway for global oil and gas shipments, has been affected by the conflict, pushing up prices.
Europe’s benchmark gas price has risen by about a third since fighting began earlier this year. While supplies have not yet been cut, the rise in costs is already being felt by businesses and consumers.
Officials say the EU’s measured response reflects the limits of its powers. National governments control many of the tools needed in a crisis, such as subsidies and tax changes.
Some proposals aim to offer immediate relief. These include encouraging businesses to reduce non-essential air travel to ease demand for fuel.
Elisabetta Cornago, assistant director at the Centre for European Reform think tank, said that a prolonged disruption could lead to a significant oil shock, though the impact on electricity may be smaller than in 2022 when Russia cut gas supplies.
That is partly because Europe now relies more on low-carbon energy. Around 71% of its electricity came from renewable and nuclear sources last year, up from about 60% in 2022.
For many across the region, the concern is familiar. Governments are once again preparing to manage higher energy costs, while trying to avoid the severe disruptions seen just a few years ago.
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