EU energy ministers split in Luxembourg over plan to cut electricity bills as a difficult winter approaches

A meeting of energy ministers from European Union member states, held on Thursday in Luxembourg and chaired by Irish Energy Minister Daragh O'Brien, revealed a wide split among EU capitals over the European Commission's proposal to lower electricity bills, as the continent prepares to enter winter amid high gas and oil prices.

The proposal, put forward by the Commission in July, would reform electricity network charges and impose taxes on electricity at lower rates than on natural gas to encourage households and businesses to switch from fossil fuels to electricity. Several countries, including Germany, Italy, Poland and Sweden, opposed the tax elements, saying they affect national taxation powers and the independence of national regulators.

Jørgensen: 50 million Europeans unable to heat their homes

European Commissioner for Energy Dan Jørgensen said on the sidelines of the meeting that about 50 million Europeans cannot heat their homes adequately due to high energy prices, and he expects that number to rise during the coming winter, which he described as difficult for many citizens. He urged member states to adopt targeted and temporary support measures for the most vulnerable.

Jørgensen said Europe is in a better position to face the crisis than in 2022 — it now consumes 18% less gas and has diversified its supply sources after previously relying on Russia for about 45% of its needs — but he warned the current crisis is more serious because it also involves oil and its derivatives, stressing that Europe faces less of a supply-security crisis than a crisis in consumers' and companies' ability to afford the costs.

Swedish Energy Minister Ebba Busch warned that Europe is experiencing a second energy crisis within four years, expressing concern that the continent is merely replacing its dependence on Russian gas with dependence on American gas.

Qatari gas disrupted and stocks below usual

The meeting comes a day after the Dutch benchmark gas contract closed above €100 per megawatt-hour for the first time since 2022, a development we covered in a report European gas price exceeds €100 for the first time since 2022 and Brussels warns of a new energy crisisThe price rise was driven by disruptions to LNG shipments from the Gulf, after QatarEnergy extended force majeure on shipments to several of its buyers until the end of the year, including the Italian company Edison.

EU countries enter the heating season with gas storage about 75% full, while French Minister of the Economy Roland Lescure said Europe will release more than 42 million barrels from its oil reserves into markets over the next three months — half of which will be diesel — to relieve pressure on fuel prices.