Energy crisis

Subject: Energy crisis

Everything moves very quickly in the 21st century and we can see on a daily basis the benefits of technologies that are continuing to develop rapidly. Despite this, however, poverty remains a pressing issue – even in the European Union. In some countries, part of the population are unable to heat their own homes. In Bulgaria, in 2020, 27% of the population were in this situation, as were 23.1% in Lithuania and 20.9% in Cyprus. Energy poverty affects tens of millions of European citizens every year.

This year the situation is even worse, given the exceptional increase in global energy prices. This is all the more worrying considering that winter is just ahead.

1. Can the Commission therefore describe the steps being taken to counter energy poverty?

2. What measures has the Commission adopted, or is it considering, to support European countries and citizens during this crisis which has triggered the sharp rise in energy prices?

Answer given by Ms Simson on behalf of the European Commission

(10 January 2022)

Addressing energy poverty has been and will remain a pillar of the Commission’s energy policy. In addition to proposing concrete measures to tackle energy poverty and support vulnerable consumers in the Fit for 55 package (1) and in particular through the revised Energy Efficiency Directive (2) and the Social Climate Fund (3), the Commission will facilitate greater coordination and sharing of experiences and best practices between Member States through a new Energy Poverty and Vulnerable Consumers Coordination Group and provide technical assistance, through the Energy Poverty Advisory Hub (4), to actors taking action at local level.

Concerning the Energy prices crisis, the Commission presented a toolbox (5) of measures to protect in particular vulnerable consumers from rising energy bills.

In the short term, this includes direct support, non-selective or targeted tax reductions, prevention of grid disconnections, deferral of payments and better coordination on energy poverty measures.

Medium-term measures to mitigate future price volatility include increasing share of renewable energy, investments on energy efficiency and building renovations, as well as facilitating consumers’ empowerment and further strengthening resilience of the EU’s energy system against future shocks.

Many measures identified in the EU toolbox are in the hands of the Member States, as they are responsible, for example, for social policy and set domestic tax rates, and know the specific challenges best.

The Commission will also consider revising the security of supply regulation to ensure more effective functioning of gas storage, look into the potential benefits of voluntary joint procurement of reserve gas stocks and propose a new legal framework for gas and hydrogen.

⋅1∙ https://ec.europa.eu/commission/presscorner/detail/en/IP_21_3541

⋅2∙ https://ec.europa.eu/info/news/commission-proposes-new-energy-efficiency-directive-2021-jul-14_en

⋅3∙ https://ec.europa.eu/clima/eu-action/european-green-deal/delivering-european-green-deal/social-climate-fund_en

⋅4∙ https://energy-poverty.ec.europa.eu/index_en

⋅5∙ Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the

Committee of the Regions, ‘Tackling rising energy prices: a toolbox for action and support’ of 13 October 2021, COM(2021) 660 final.