European Union looks to soften energy bill pressures for industry, document shows

March 7, 2026

A European Union flag flutters outside the European Commission headquarters in Brussels, Belgium February 26, 2026.

Summary

• EU eyes bridge solution until green transition cuts price
• EU leaders to discuss relief options at summit on March 19
• EU mulling actions on energy taxes, carbon costs, ​document shows

BRUSSELS, March 7 (Reuters) – The European Union is examining energy ‌taxes, network charges and carbon costs as possible areas for short-term measures to ease pressure on industries hit by high energy prices, a document seen by Reuters showed.

Brussels is looking ​for quick fixes after companies warned they cannot compete with rivals in ​China and the U.S. – even before this week’s surge in oil ⁠and gas prices sparked by the U.S.-Israeli war on Iran.

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European Commission President ​Ursula von der Leyen has pledged to present options for EU leaders to consider at ​a summit on 19 March.

A Commission paper prepared for a meeting of EU Commissioners on Friday showed the bloc is exploring short-term measures to help the hardest-hit regions and sectors, without ​undermining longer-term climate laws meant to shift Europe to a cheaper, low-carbon energy ​system.

“Any proposal for legislative change will not deliver immediately and a bridge solution may be ‌needed ⁠to reduce energy prices in the next 2-5 years until the clean transition eases pressure on power prices as already seen in some regions,” said the document, seen by Reuters.

The paper said the Commission would look at network charges – which make ​up about 18% ​of industrial power ⁠bills – and national taxes and levies, as well as carbon costs, which account for around 11% of bills.

It noted that ​governments are underusing existing tools to cut companies’ energy bills, ​including state ⁠aid to offset carbon costs and contracts for difference that guarantee industrial consumers a stable power price.

The document said that if energy supplies are disrupted further, Brussels must ⁠be ​ready to introduce measures to encourage consumers to ​use less energy, as it did in 2022 when Russia slashed gas deliveries.

A Commission spokesperson did not ​immediately respond to a request for comment.

Reuters