Europe faces another energy crisis, with war-driven price spikes adding €2.5 billion in extra costs to EU energy bills in just 10 days.
The short-term fix is immediate: cut electricity taxes. Last year, taxes and levies made up 28% of the average European electricity bill-far higher than fossil fuel taxes. In Spain, electricity taxes were 4.2× higher than fossil gas taxes; in Germany, 3.2× higher.
Germany cut annual bills by 16% by shifting a renewable levy from electricity bills to general taxation. Denmark lowered heating electricity prices-spurring heat pump adoption.
CAN Europe argues for rebalancing taxation: away from electricity, toward fossil fuels. With oil majors earning over €88 billion in 2024, higher profit taxes won’t raise consumer prices-economic evidence shows profit taxes are rarely passed on.
A permanent windfall tax-modeled on the €28 billion 2022 EU solidarity contribution-is now urged to fund clean energy infrastructure, grid upgrades, and energy efficiency.
"Give people breathing space," says CAN Europe’s Seda Orhan. "Then future-proof Europe’s energy system."