Call to end higher taxes on electricity than gas

A letter has been sent to energy ministers to call for action to lower electricity bills without distorting power markets.

The letter, signed by Eurelectric President Markus Rauramo, CEO of Fortum and Secretary General Kristian Ruby, highlights three key priorities ministers should focus on.

They argue that removing non-energy costs from electricity bills would provide immediate relief without market distortion, while using targeted temporary support for consumers rather than subsidising gas generation.

They also pointed out that EU energy ministers need to anchor a target of around 50% electrification by 2040 in the post-2030 framework, alongside a meaningful, predictable carbon price and swift implementation of ETS2, in order to provide electrification for long term energy security.

Their final priority point was arguing that electricity should never be more heavily taxed than gas, in order to ensure fairer network charges and taxation.

The letter comes ahead of the Energy Council on 29^th October – which may include discussions around these topics.