Need to knowThe proposal would see EU member states taxing electricity at a lower rate than natural gas
Could help be on the way for Irish households?(Image: Tomasz Skoczen/Getty images)
The European Union is planning to slash the cost of electricity as Irish households grapple with the highest prices in the bloc.
Here’s all you need to know
As global energy prices soar due to the fallout of the Iran war, the EU is preparing changes to energy taxes and customer consumption. The proposal would see EU member states taxing electricity at a lower rate than natural gas.While Governments would still set national tax rates, members would have to comply with the new rules if they are implemented. The EU hopes that slashing the tax on electricity will encourage an increased use of electric cars and heat pumps, and steer away from fossil fuels.This is according to the draft proposals seen by Reuters, which also reportedly states that the EU will be setting a target that half of all electricity customers will have a smart meter by 2030. Member states will also be required to incentivise customers to shift their usage to times of the day when power is cheaper, with a smart meter allowing them to track consumption.The draft, which is due to be published on July 22, states: “Users of the grids should be incentivised to behave in a system-friendly way, adjusting their energy use or shifting it towards times and places where the cheapest energy sources are available.”It added that “fast action” is needed within the EU to decrease electricity bills and the bloc’s dependence on fossil fuels. However, the tax changes would require approval from EU lawmakers and the majority of member states.This comes as Electric Ireland announced a price increase of 8 per cent from July 1, with Eurostat finding that Ireland has the most costly energy prices in the EU. And a recent report from The Household Energy Price Index revealed that Dublin has the most expensive energy prices of any city in the EU, 52 per cent above the union’s average.
Subscribe to our newsletter for the latest news from the Irish Mirror direct to your inbox: Sign up here.
Follow irishmirror: