The European Commission will encourage working from home and subsidies for public transport in order to reduce fossil fuel consumption, as countries cope with the energy price shock caused by the war in the Middle East.
Next week, the Commission will present a series of measures to member states aimed at reducing demand, improving energy efficiency, and supporting the transition to clean energy, according to a document seen by Financial Times. These steps are intended to provide “immediate relief” from high energy prices.
The recommendations are based on measures implemented during the previous energy crisis triggered by Russian invasion of Ukraine. They are part of broader efforts to reduce dependence on fossil fuels and promote the use of green energy.
Companies should be encouraged to provide at least one mandatory day of remote work where possible, the Commission stated in the annexes of the draft communication. It also recommended subsidizing public transport and reducing VAT on heat pumps, boilers, and solar panels.
Brussels will also set “ambitious,” though still undisclosed, electrification targets, according to the document, which contains several gaps and has not yet been finalized.
To achieve these electrification goals, Brussels will assist member states in developing “social leasing schemes for clean and efficient technologies,” including heat pumps, electric vehicles, and small batteries.
Several officials stressed that the measures are recommendations rather than binding rules. “If we face an energy shortage, it is our responsibility to ensure that citizens know what they can do to reduce consumption,” one EU official said. “We are not micromanaging people’s lives.”
The Commission issued similar guidance in 2022, when it encouraged companies and consumers to lower thermostats by one degree.
The recommendations to reduce oil and gas consumption are part of a broader package addressing higher energy costs, including electrification of the energy system and increased coordination in fossil fuel procurement. Other measures, including addressing shortages of aviation fuel, are still under development, the document said.
The communication, which will be presented to heads of state next week, is largely non-binding. However, the Commission will propose two laws aimed at reducing costs.
This includes legislation to adjust electricity market rules in order to lower transmission costs. This would involve monitoring the cost-efficiency of different grid operators and recommending tariffs for heavy industry.
It will also seek to amend a directive to ensure that electricity is taxed at lower levels than fossil fuels. A more ambitious proposal was rejected in 2025, but officials are optimistic that the energy crisis will help reintroduce the measure.
The document states that member states will have the flexibility to introduce a zero tax rate for electricity used by energy-intensive industries.
The latest document also notes that the Commission will help member states design price caps and income support programs, as well as assess windfall taxes at the national level, which falls short of some countries’ calls for a unified EU-wide tax.
