EU Electrification Action Plan is a step forward, but business concerns must be addressed

BusinessEurope welcomes the Commissions publication of the Electrification Action Plan and the accompanying legislative proposal. BusinessEurope Director General Markus J. Beyrer said:

“The European electrification rate has remained at around 23% for over 10 years, while it is increasing rapidly in other parts of the globe. Deeper electrification will be essential to reach climate neutrality and can bring lower and more stable prices for consumers, but it isn’t the only decarbonisation pathway. Investments in electrification should focus on areas where it is economically viable and technologically feasible.

As the availability of affordable electricity remains a key barrier to further electrification, it is positive that further steps will be taken to lower total system costs and use the existing grid infrastructure in cost-effective way. In particular, the legislative proposal on network charges gives authorities more capabilities to lower network charges, including for energy-intensive industries. However, we are concerned by proposals to link network tariffs to flexible consumption, as this would penalise industrial consumers with stable, predictable demand.

We welcome the proposal to support electrification by facilitating lower electricity taxation for industry. To ensure a successful transition, the framework should also preserve Member States' fiscal competences and recognise that low-carbon gases will remain essential for sectors where electrification is not yet feasible.”