March 10, Brussels – The Citizens Energy Package (CEP), presented today by the European Commission (EC) is a long-awaited move from the European Union to make the energy transition work better for people: lowering energy bills, strengthening energy security, and removing blockages from active participation in local energy initiatives such as energy communities.
The package includes many welcome measures which lower bills, empower consumers, and tackle energy poverty, but these remain timid and technical. We hope this is only a prelude to a more ambitious Heating and Cooling Strategy.
Lower bills for renewable energy, support for energy communities
A central objective of the package is to help households reduce their energy costs. The package introduces several positive steps towards that direction such as lower network costs, facilitating new types of contracts, standardising energy contracts and facilitating switches. Yet the most impactful measure to make renewable energy a competitive choice for consumers is rebalancing energy taxes. This is why we are disappointed to see that the European Commission fails to issue a formal Recommendation that Member States act without waiting for negotiations on the Energy Taxation Directive to conclude but obviously not as frustrated as we are that Member States continue to hold up said negotiations.
Another major milestone is a dedicated action plan for energy communities, which is promised to be delivered in Q1 of 2027, along with guidance documents to clarify the differences between energy communities and energy sharing and how to set each up. Just yesterday the European Court of Auditors called out slow progress in democratic energy: only 27% of large municipalities have an energy community, far behind the target of 100% by 2025.
Measures to lower energy poverty
The package acknowledges the role of energy poor households and introduces several measures to reduce energy poverty. The involvement of local authorities in these measures is particularly welcome, as they are the first line of response but may lack the technical expertise to detect and respond to energy poverty.
This package makes a point that citizen energy is cleaner, cheaper, safer, and fairer. Allowing citizens to produce their own energy across generations, regions, and income groups, with particular attention to society’s most vulnerable, is how we can ensure vital necessities are within reach instead of at the mercy of world events.
“The European Commission has the right diagnosis: affordability, sustainability, justice, and security go hand in hand, because natural gas is 30% of household energy use, and oil another 10%. Ensuring the energy in our homes is produced within reach of all citizens makes those homes cleaner, wealthier, healthier, happier, and safer. This is why it is all the more disappointing that the remedies proposed remain timid and technical, falling short of what is needed to help households both in the short term and for a long-term transition that is socially inclusive and economically strong.”
Tom Vasseur – Director Cool Heating Coalition