COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the Citizens Energy Package
Date: 2026-03-10
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, clean technology, consumer protection, energy efficiency, energy poverty, energy production, energy supply, energy transition, price of energy, renewable energy

EN 

  EN 

   EUROPEAN COMMISSION  Strasbourg, 10.3.2026  COM(2026) 115 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the Citizens Energy Package {SWD(2026) 115 final}  
 
 
The Citizens Energy Package – Affordable energy for all 

All  Europeans  should  have  access  to  affordable,  clean  energy  in  comfortable  and  resilient 
homes. Affordable energy is an essential condition for a safe, decent quality of life, free of 
poverty, and key to ensuring fairness  and inclusion, in particular for groups in situations of 
vulnerability  and of all generations. If energy prices are too high, the entire economy suffers 
– consumption drops  and  businesses slow  down. This  is  what  the Citizens Energy Package 
intends to address. 

The safest way to obtain affordable energy is to rely on clean energy that Europe can produce 
for  itself.  This  is  why  Europeans  need  to  be  empowered  to  switch  from  gas  to  cleaner 
alternatives based on electricity. Electrification will bring lower and more stable prices over 
time  while  increasing  European  independence,  sustainability  and  competitiveness.  Member 
States have a role to play here by setting the right targeted incentives – for instance, making 
the use of electricity more attractive through tax incentives and lower levies. 

Flexibility  allows  homes  with  smart  meters  to  use  energy  when  electricity  is  abundant  and 
cheaper.  Smart  and  bidirectional  charging  of  electric  vehicles  can  further  support  this 
flexibility. For this to work, citizens need access to reliable information and advice adapted to 
different needs (including disabilities), affordable technologies, and services that reward users 
for shifting  their electricity  consumption from  peak times to  cheaper periods  – with  special 
attention paid to groups facing digital exclusion. A recent Eurobarometer survey1 indicates the 
EU  energy  consumers  want  better  protection  of  vulnerable  consumers  and  those  in  energy 
poverty, and more clarity and transparency of energy bills. 

Citizens – for instance, farmers, rural inhabitants , small-business owners or kindergartens – 
should be able to team up and produce and share their self-produced energy. This takes pressure 
off  local  energy  grids  and  prevents  unnecessary  investments  in  energy  infrastructure.  The 
financial and technical requirements to set up energy communities should be clear and simple. 
Empowering consumers is also beneficial for European manufacturers of clean technologies 
and electricity suppliers as increased demand for innovative products (such as heat pumps) and 
services (such as social leasing, heat-as-a-service) will provide investment certainty and help 
bring growth to these job markets. These innovative technologies will also improve the energy-
water  nexus,  especially  during  droughts  and  heatwaves,  and  thereby  help  lowering  energy 
bills2. 

The  Citizens  Energy  Package  aims  as  well  to  tackle  energy  poverty  –  a  serious  situation 
currently  faced  by  too  many  citizens  in  the  EU,  and  disproportionally  affecting  groups  in 
situations of vulnerability, and in rural or remote areas, outermost regions and islands. In 2024, 
almost 10% of European citizens could not adequately heat their homes in winter, and many 
face  rising  cooling  needs  in  summer.  Improving  the  energy  performance of  buildings and 
switching  to  cheaper  electrical  heating  and  cooling  or  district  systems  based  on  renewable 
energy is essential in order to reduce energy poverty and housing expenditure. 

A strong set of EU laws is already in place for all this, but its implementation remains uneven. 
Ensuring effective enforcement of EU laws is key to ensuring that citizens can  fully benefit 
from  their  rights.  Local  authorities  are  key  for  supporting  citizens  in  the  energy  transition 
through administrative, technical and financial advice, in particular when it comes to dealing 
with energy poverty and reaching groups with specific needs. With the aim of stepping up joint 
efforts across all levels of government and deliver for European citizens, this communication, 

1 Flash Eurobarometer 566 ‘Consumer behaviour in the energy transition’, December 2025. 
2 European Water Resilience Strategy, COM/2025/280 final. 

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complementing other Commissions initiatives3 on affordable energy, sets outs concrete actions 
to:  (i)  lower  energy  bills  for  households;  (ii)  protect  and  empower  consumers;  (iii)  tackle 
energy poverty; and (iv) implement the existing EU laws effectively. 

PILLAR I: LOWERING ENERGY BILLS FOR HOUSEHOLDS 

High  energy  prices  hurt 
Europe’s  economy  and  its 
citizens. Household electricity 
prices  rose  sharply  during  the 
remain  elevated 
crisis  and 
disproportionately 
today, 
harming groups in situations of 
vulnerability.  Retail  electricity 
prices faced by EU households 
are 36% above their 2014-2020 
average  with  retail  gas  prices 
68%  higher  compared  to  the 
average in the same period. As 
a  reference,  inflation  over  the 
same  period  was  of  26%, 
that  prices  have 
meaning 
once 
10% 
increased 
corrected with inflation.   

by 

Figure 1. Average bi-annual electricity and gas prices in the EU for 
households. Source: Eurostat household energy prices (bands DC for 
electricity and D2 for gas). Prices include all taxes and  levies. Gas 
prices are converted to EUR/kWh 

The energy bills citizens pay are influenced by network charges, national taxes and levies, 
the wholesale energy price and the level of individual consumption. National energy taxes, 
and the calculation of network charges are mainly under the responsibility of the Member States 
and their regulatory authorities, giving them tools to make energy bills more affordable. The 
Commission is therefore proposing four concrete actions in this respect. 

Action 1: Lowering taxes and levies on electricity for households to the EU minimum 

can 

Electricity  taxes  and 
levies 
account, on average, for 25 % 
of the price for households and 
15% of the price for businesses.  
Member  States 
lower 
national energy taxes and levies, 
including  additional 
taxes  or 
levies  with  no  connection  to 
energy  (e.g.  public  broadcasting 
charges  added 
to  electricity 
bills4). Removing unrelated costs 
benefits  everyone’s  electricity 
vulnerable 
bill, 
households.  

notably 

Figure 2. Electricity price components for average EU 
Households (2019 – 2024). Source: Eurostat. 

3 Namely, the Clean Industrial Deal, the Affordable Energy Action Plan, the Affordable Housing Plan, the Grids 
Package, the Agenda for Cities, as well as the forthcoming Electrification Strategy, the Heating and Cooling 
Strategy or the Strategic Roadmap for Digitalisation in the Energy Sector. 
4 Greece, Italy and Portugal add charges related to public broadcasting to electricity bills. 

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Some  Member  States5  lowered,  or  are  in  the  process  of  lowering,  the  tax  rate  for  energy-
intensive  industries.  Lowering  taxation  also  proved  effective  in  containing  energy  bills 
temporarily  during  the  energy  crisis,  particularly  where  the  electricity  retail  price  was 
significantly  higher  than  for  gas.  Under  the  existing  Energy  Taxation  Directive  and  VAT 
Directive, Member States have the flexibility to lower minimum excise duty rates and VAT on 
electricity prices. This would have an immediate effect on electricity prices and contribute also 
to faster electrification of end-uses.  

Goal  

Lowering consumer electricity bills and supporting electrification  

Result  Citizens’ bills could be lowered by 14% or an average of EUR 200 per year. 

How 

Member States to contribute to lower electricity bills for households by carrying 
out tax reviews and making full use of the flexibilities in EU legislation, and 
considering full or partial targeted reductions of excise duty rates regarding 
electricity, e.g., for energy poor and vulnerable households  

Action 2: Lowering network costs for local consumers  

Consumers pay network tariffs to cover the cost of transporting energy to their homes. This 
makes  up  between  a  quarter  and  a  third  of  electricity  prices  and  is  key  to  energy 
affordability. EU legislation protects consumers by requiring that network operators only pass 
on costs which are cost-reflective, transparent, take into account the need for network security 
and flexibility and reflect actual costs incurred6. Tariffs, and the costs associated with them, are 
subject to approval by independent national regulatory authorities.   

Energy  communities  producing  energy  for  their  own  consumption  or  sharing  energy  with 
neighbours  can  help  reduce  the  use  of  local  grids  and  help  avoid  investments  in  additional 
infrastructure.  Flexibility  rewards  in  grid  tariffs,  which  lower  the  energy  bill  for  energy 
communities  and  citizens  sharing  their  energy,  would  provide  incentives  for  the  local 
production and consumption of energy and provide benefits for all network users. 

In 2025, the Commission published guidance on network tariffs7 to help national regulatory 
authorities keep network charges, and therefore consumers bills, low. Swift implementation of 
this  guidance  will  help  to  lower  network  charges  for  all  consumers.  The  Commission 
encourages  regulatory  authorities  to  apply  a  rigorous  approach  when  assessing  the 
costs/revenues and take full account of the potential flexibility and demand response to replace 
expensive infrastructural  investments.  Following up on the  guidance on network tariffs, the 
Commission will work with national regulatory authorities on accelerating the energy transition 
including by rewarding the positive effects of energy communities and energy sharing.  

Goal  

Result 

How 

Lowering network tariffs for consumers 
Flexible consumption and flexible local electricity production and consumption 
supporting lower grid investment needs and more efficient operation. 
National regulatory authorities are encouraged to consider targeted incentives 
in grid tariffs for flexible local consumption which would reduce overall grid 
costs, e.g. energy communities and citizens sharing their energy; and to assess 

5 Germany, France. 
6 Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for 
the internal market for electricity and amending Directive 2012/27/EU (recast). 
7 Notice on Guidelines on future proof network charges for reduced system costs, C(2025) 4010 final. 

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flexibility potential, in particular from energy communities and energy sharing 
when designing network charges. The Commission will cooperate closely with 
ACER  and  national  regulatory  authorities  on  the  swift  implementation  of  the 
Commission guidance on network charge design. 

Action 3: Boosting the use of clean and energy-efficient technologies. 

In 2023 the main use of energy by  EU households was  for  heating homes  (62.5% of  final 
energy consumption in the residential sector), followed by water heating (15.1%)8. EU energy 
labels  already  display  saving  potentials  and  give  consumers  useful  advice,  for  example  in 
purchase decisions on appliances for their homes9. Home energy management systems and 
modern energy smart appliances have the capacity to lower energy bills. The transition to 
electric  mobility  offers  additional  opportunities  to  reduce  energy  costs  through  smart  and 
bidirectional charging of electric vehicles, enabling households to optimise electricity use. Yet, 
they are often perceived as too costly, mainly due to the high upfront payments. To tackle this, 
some  Member  States  have  set  up  innovative  financing  models,  including  social  leasing10. 
Companies in some markets offer customers clean heating systems (including maintenance) by 
allowing consumers to pay the costs in flexible monthly instalments11. Beyond-grant schemes 
are being developed but have in most cases not yet been widely rolled out.  

The Commission urges Member States and companies to go beyond a grant-only approach 
and to develop innovative energy services and financing solutions – for example, schemes 
combining  social  leasing  with  potential  to  cover  upfront  capital  costs,  offering  heat  as  a 
service12, or flexible tariffs for heat pumps and maintenance costs. This will give EU citizens 
greater access to clean and energy- and water-efficient technologies, improving quality of life 
through, for example,  reduced pollution, better indoor comfort and health, and lowering energy 
bills. Properly designed schemes combining public and private funding that prioritise people 
in energy poverty and other groups in situations of vulnerability will have a positive effect on 
lower-  and  middle-income  households,  whose  energy  costs  can  make  up  a  disproportionate 
share of their overall household income. Similarly, investment should be supported to deploy 
clean or energy efficient solutions in off-grid situations. With the forthcoming Clean Energy 
Investment  Strategy13,  the  Commission  aims  to  unlock  private  investments  in  energy 
efficiency.  

Goal   
Result 

How  

Increasing access to clean, efficient technologies with innovative solutions  
Improved energy performance of buildings, lower energy bills. 
The  Commission  will  work  with  Member  States  and  stakeholders,  within  the 
European Energy Efficiency Financing Coalition, on devising practical and 
innovative energy service models and financing solutions and also beyond-grant 
approaches, including sharing best practices on reaching vulnerable households, 
increasing uptake of home and buildings energy management systems and energy 

8 Eurostat, ‘Energy consumption in households’, June 2025. 
9 ‘Europeans attitudes towards energy policies’ – September 2024 – Eurobarometer survey. More than three 
quarters of respondents had used the EU energy label during the past five years. 
10 For example, France has launched the second edition of the social leasing system for electric vehicles. In 
Latvia, a state-owned company provides companies and households with access to financial resources, through 
loans, guarantees and investments in venture capital funds. 
11 Good practices provided in the Annex of Commission Recommendation on unlocking private investment in 
energy efficiency. COM(2026)1526, Recommendation  
12 A business model that allows customers to pay for the heat they use rather for the infrastructure or fuel. 
13 COM(2026) 116, Clean Energy Investment Strategy. 

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smart appliances and improving households’ access to electrified, flexible, and 
efficient energy services and technologies (Q4 2026).  

Action 4: Empower consumers to have the cheapest offer and to switch supplier quickly 

EU  legislation  gives  citizens  the  right  to  switch  to  alternative  energy  providers14;  yet  it  is 
estimated that citizens lose on average EUR 152 per year by not doing so15. One reason is the 
lack of transparency; not all existing comparison  tools may be sufficient in this regard, and 
while  intermediary  platforms  can  facilitate  switching,  their  business  models  are  not  always 
clear, which can compromise transparency and accountability.  

The  Commission  calls  on  Member  States  to  ensure  that  energy  suppliers  provide  their 
customers with ‘best tariff advice’ on the basis of their specific energy usage at least once a 
year, and put in place an ‘early warning system’ if there is a risk that a customer’s energy 
consumption  will  greatly  exceed  the  level  assumed  when  the  contract  was  concluded  and 
whenever a cheaper offer becomes available16. Such services, which reflect those provided in 
other  sectors17,  would  allow  consumers  to  react  promptly  and  change  contract  (e.g.  from 
flexible to fixed), with a positive impact on their bills. 

Citizens should have access to  clear information about their contracts;  a concise summary 
should be provided in good time before a contract is concluded or extended. To ensure that 
vulnerable consumers, including those lacking digital tools or skills, can effectively exercise 
their rights, suppliers should provide this summary free of charge in accessible formats and 
through multiple channels. The Commission will provide guidance on key contractual terms 
and conditions and encourage suppliers to provide a standardised summary.  

There  are  also  unnecessary  technical  hurdles  to  switching  suppliers. To  address  them,  the 
Commission will lay down technical rules for suppliers to ensure that back-office switching 
operations across the EU can be completed within 24 hours. Furthermore, a full roll-out of 
smart meters by Member States is key – to exercise their rights, or to benefit from flexibility 
services (see action 6), citizens need to have a clear view of the energy they consume.  

Goal 

Result 

How 

Improving  the  transparency  and  comparability  of  energy  supply  offers;  
enabling technical switching of suppliers within 24 hours. 
By switching, estimated savings of up to EUR 152 per year. 
The Commission will adopt technical rules on supplier switching (Q1 2026); 
adopt a recommendation on the summary of the key terms and conditions 
of  energy  contracts  (Q1  2026);  and  consider  a  recommendation  on 
standardised templates for energy bills (2027). 

PILLAR II: PROTECTING AND EMPOWERING CONSUMERS 

Action 5: Boosting energy self-production and energy sharing among citizens  

Citizens can decide to join forces and set up an energy community to manage joint investments 
and produce and consume renewable energy, for example through solar panels, wind turbines, 

14 Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for 
the internal market for electricity and amending Directive 2012/27/EU (recast), Arts. 4,12. 
15 ACER 2021 Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets 
16 See also action 7. 
17 In telecoms, providers should give customers best tariff advice at least annually, which could encourage them 
to change their contract option. 

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and district heating systems. This is a right guaranteed by EU law.18 While more than 8000 
energy  communities  are  currently  active  in  Europe19,  the  untapped  potential  is  huge, 
particularly in rural areas, for example by producing renewable energy, including biogas and 
biomethane,  local  waste  management.  Collective  benefits  can  also  be  achieved  by  sharing 
energy. This allows a larger group of people such as tenants, low-income households, and those 
without suitable space to benefit directly from home-grown renewable energy. Self-production 
and energy sharing mean  greater autonomy and  stable access  to  affordable  and more stable 
prices and make the energy system more efficient.  

By 2030, over 16 million households and 630.000 SMEs could produce their own renewable 
energy.20 There is potential to increase the installed renewable energy capacity of communities 
of households by up to tenfold.21 Individual households producing and consuming their own 
solar energy can achieve savings of EUR 260-550 per year. For communities of households 
with a mix of wind and solar energy, it could be EUR 440-930 per year.22 

To  achieve  this  potential,  energy  communities  need  to  be  empowered  to  share  electricity 
without being subject to excessive supplier fees, sell surplus energy and tap into their potential 
to  balance  high  or  low  market  demand. Administrative  requirements  must  be  reduced  to  a 
minimum. Targeted  support  should  be  provided  to  ensure  accessibility  for  energy  poor  and 
vulnerable households. To support Member States in this endeavour, the Commission will issue 
an energy communities action plan. 

Goal 

Result 

How 

Tapping into the potential of energy communities to increase their installed 
renewable energy capacity by up to tenfold by 2030 in the EU, enabling the 
production of renewable power for 25–30 million households. 
Potential  savings  of  EUR  260-550  per  year  for  individual  households  and 
potential financial benefit of EUR 440-930 per year for communities. 
The Commission will provide guidance to Member States on how to unleash 
the potential  energy communities and energy self-consumption, including 
sharing good practices. on the basis of an assessment of potential and existing 
barriers 
implementing  regulation  on  data 
interoperability to ensure that energy sharing is easy to use and fully automated 
for consumers (2027); and issue a series of practical, step-by-step guides on 
how to set up and manage community energy projects for households and other 
stakeholders, including SMEs, farmers and public authorities (2026-2027). 

(Q1  2026);  adopt  an 

Action 6: Promoting flexibility through retail contracts 

Consumers  with  flexible  retail  contracts  can  make  significant  savings.  In  some  cases, 
electricity  bills  can  be  up  to  40%  lower,  when  shifting  heating  demand  to  times  with  low 
electricity  prices23.  This  is  one  of  the  reasons  why  demand  flexibility  should  be  actively 
promoted across the EU.  The benefits include reduced electricity generation and lower network 

18 Article 16 of Directive (EU) 2019/944 and Article 22 of Directive (EU) 2018/2001. 
19 Estimate based on a broad interpretation of the concept, not limited to the EU definitions alone. 
20 EnTEC study on the potential of citizen energy (forthcoming). 
21 Community energy could contribute up to 90 GW, accounting for 8% of total renewable electricity generation 
in the EU by 2030. See EnTEC study on the potential of citizen energy (forthcoming). 
22 Cost savings are calculated based on wholesale and retail market prices in 2020 and 2022. Where electricity 
is self-consumed using the grid, all network tariffs and taxes apply.  
23 On the basis of data from the ACER 2025 market monitoring report and the Commission’s own calculations. 

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costs,  as  well  as  lower  need  for  capacity  support  measures,  with  potential  annual  savings 
estimated at EUR 2.7 billion by 203024.  

Realising these benefits means ensuring that flexible retail contracts are widely available; 
that consumers have access to transparent pricing and reliable information, and targeted 
advice on how to choose the supply contract best suited to their needs; and that the necessary 
technical tools are in place. Smart metering systems are key – they provide the data needed 
for flexibility to work. Efficient access to relevant data further facilitates greater automation, 
therefore improving consumer experience, while ensuring strong data protection. 

Promoting  flexibility  also  means  removing  barriers  to  flexibility  services  providers  – 
companies that reward their customers for shifting their electricity usage from peak times to 
cheaper periods, reducing strain on local grids. The Commission will provide guidance to help 
remove these barriers, such as disincentives or unsuitable price signals. 

Outside the EU, Australia’s Solar Sharer Offer provides households with zero-cost electricity 
during times of high solar generation. Inside the EU suppliers have also been developing offers 
with zero-cost electricity.  Member States may wish to explore similar mechanisms adapted to 
the EU regulatory framework, which enable direct citizen benefits from the clean transition by 
lowering bills without requiring upfront investment in rooftop solar, that encourage demand-
side  flexibility,  align  consumption  with  periods  of  high  renewable  output,  improve  grid 
efficiency and strengthen public support for decarbonisation, by making the advantages of the 
energy transition visible and tangible. 

Goal 

Result  

How 

Enabling  citizens  to  confidently  benefit  from  flexible  retail  contracts  and 
smart energy devices that optimise energy use.  
Lower consumer bills and system costs, with potential savings of up to 40%25.  
The  Commission  will  provide  guidance  to  promote  the  remuneration  of 
flexibility in retail contracts (Q1 2026); improve access to the data required for 
flexibility with an Implementing Regulation on interoperability requirements 
and procedures (2027); and promote the potential of flexibility and efficiency in 
relevant projects under the new Partnerships for Better Homes (2026). 

Action 7: Strengthening consumer trust  

Energy consumers face aggressive telemarketing practices or find it sometimes difficult to 
navigate  the  energy  markets.  This  results  in  a  lack  of  trust  in  the  market  and  restricts 
opportunities to benefit from cheaper alternatives or more innovative services26.  

To improve the quality  of energy services for customers, the Commission will engage with 
consumers associations, energy suppliers and regulators to develop a new code of service for 
energy suppliers, as a first step towards countering unfair marketing practices. The code 
will  give  energy  suppliers  the  opportunity  to  voluntarily  commit  to  go  beyond  existing 
requirements to provide efficient complaint handling and prevent disconnections of vulnerable 
consumers  –  such  as  those  living in  rural  areas  –  through  longer  notice  periods,  tailored 
payment plans, minimum supply, and to offer ‘best tariff advice’ and ‘early warning’ systems 
(see  action  4).  The  code  will  serve  as  a  trust  mark  by  which  energy  suppliers  signal  to 
consumers that they can expect transparent and fair services. Some Member States are already 

24 Demand-side Flexibility: Quantification of benefits in the EU; DNV for smartEn, September 2022.  
25 On the basis of data from ACER 2025 market monitoring report (Rewarding Flexibility: How retail contract 
choice can help unlock consumer flexibility) and the Commission’s own calculations, electricity consumers could 
achieve savings of up to 40% if they switch to a dynamic price contract and actively manage their consumption. 
26 The Eurobarometer flags unfair commercial practices as an area for improvement. 82% of respondents would 
trust an energy provider more if they committed to an officially certified code of practice on consumer rights.  

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successfully  applying  and  enforcing  such  a  code27.  It  will  remain  at  the  discretion  of  the 
Member States to decide if and how such a code will be enforced at national level. 

While AI and digitalisation will bring many benefits, including energy savings and energy 
bill reductions, it also presents new challenges. The Commission will therefore assess if the 
current rules are fit for purpose in this regard.  

Trust in the market suffers if energy suppliers do not protect themselves against volatile prices. 
When energy suppliers fail, customers can lose any advance payments and may be forced into 
less favourable contracts. To prevent this, the Commission will provide guidance to national 
regulators on how they can ensure that energy suppliers devise appropriate risk-management 
and hedging strategies, to help keep the retail electricity market stable and reliable.  

Goal 

Result 

How 

Strengthen trust; tackle aggressive and misleading (tele)marketing; protect 
citizens from the consequences of market failures. 
Increased  consumer  trust  and  higher  quality  of  service.  Greater  market 
transparency leading to competitive pricing and improved service efficiency. 
The  Commission  will  unlock  consumers  benefits  by  proposing  an  easily 
understandable code of service on consumer rights to energy suppliers, who can 
commit voluntarily to high consumer protection standards based on transparency, 
fairness,  mutual  trust  and  accountability  (Q4  2026);  publish  new  guidance  to 
support  national  regulatory  authorities  in  preventing  supplier  failures  by 
improving risk management (Q1 2026); and assess the need to adopt a new post-
2029 EU consumer energy rights legal proposal to ensure consumer rights also 
in new innovative contracts and address aggressive or misleading (tele-)marketing 
practices (2028). 

PILLAR III: TACKLING ENERGY POVERTY AND VULNERABILITY 

Fairness and equality are at the heart of the energy transition. The protection of vulnerable 
consumers and those in energy poverty is the number one priority for Europeans, according 
to the latest Eurobarometer survey.28 Energy poverty, unaffordable housing and limited access 
to social housing can lead to growing risks of vulnerabilities. The EU is developing the first 
EU Anti-Poverty Strategy to help people access essential protection and services, address the 
root causes of poverty, and contribute to poverty eradication by 2050. Allowing everyone to 
have access to energy as an essential service will reduce vulnerability and poverty in the EU.  

Action 8: Joining forces to reduce energy poverty 

In 2024, around 42 million Europeans (9.2% of the EU population) were unable to adequately 
heat their homes29. This is a serious and unacceptable situation for too many citizens in the EU, 
with  disproportionate  impacts  on  families  and  population  groups  at  risk  of  poverty  or  of 
discrimination. 

The  EU  legal  framework  requires  Member  States  to  address  energy  poverty  and  to  protect 
vulnerable  consumers  through  policy  measures  and  concrete  actions.  However,  the 
Commission’s assessment30 of the updated national energy and climate plans shows that these 

27 For instance, Ireland, the Netherlands and France. 
28 Flash Eurobarometer 566 ‘Consumer behaviour in the energy transition’, December 2025. 
29 Eurostat ‘Population unable to keep home adequately warm by poverty status’, February 2026. 
30 SWD(2025) 140 final. 

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rules  are  unevenly  implemented  across  the  EU.  This  is,  in  part,  due  to  the  difficulty  of 
identifying  and  reaching  vulnerable  households  and  people  facing  energy  poverty,  and  of 
effectively  translating  needs  into  efficient  support  measures  –  since  energy  poverty  and 
vulnerability  are  multifaceted.  To  help  Member  States  make  their  national  plans  more 
ambitious and reduce energy poverty, the Commission will provide additional guidance and 
share  good  and  replicable  practices.  These  will  focus  on  successful  national  and  local 
approaches to address energy poverty and split incentives31, while ensuring that incentives for 
energy savings and efficiency are maintained even for households receiving social benefits to 
cover  their  energy  bills.    In  line  with  the  Energy  Performance  of  Buildings  Directive  (EU) 
2024/1275, the Commission will also  help Member States draw up their national building 
renovation plans by the end of 2026 to identify the worst performing buildings, where the 
most  vulnerable  citizens  reside,  and  design  tailor-made  policies  that  help  them  reduce  their 
energy bills and live more comfortably in their homes, in winter and in summer. The plans also 
aim to mainstream accessibility for older persons and persons with disabilities in the context 
of renovations.   
In  addition  to  energy  poverty  projects  under  the  Social  Climate  Fund32,  Cohesion  Policy 
Funds33 or  other  support  provided  at  local  level  through  the  Energy  Poverty Advisory  Hub 
(EPAH), the Commission will launch a new call for proposals under the LIFE programme34 
to fund projects that support national, regional and local authorities in tackling energy poverty, 
building on 10 projects already underway. This will empower additional actors to design and 
upscale targeted measures providing households in energy poverty with durable solutions for 
affordable  energy  and  improved  living  conditions.  Moreover,  the  Commission  will  provide 
guidance on ways to protect vulnerable households and people in energy poverty during the 
decommissioning of natural gas networks. 

Goal 

Result 

How 

Help  national  and  local  authorities  take  concrete  actions  to  reduce  the 
number  of  people  in  energy  poverty  and  protect  vulnerable  consumers  to 
ensure a fair and just energy transition.  
More consistent and targeted policies for vulnerable households in or at risk of 
energy  poverty;  faster,  fairer  and  more  affordable  access  to  structural  solutions 
(e.g. renovations); progressive and measurable reduction of energy poverty and 
related health and social issues across the EU.  
The Commission will: 

o  update its Recommendation on energy poverty35 to provide additional 
analysis and share good and replicable practices. It will include practices 
which  successfully  address  energy  poverty  and  remove  split  incentives, 
utilise  digital  tools,  simplify  outreach  to  vulnerable  citizens,  implement 
cross-sectoral  measures  to  protect  citizens  from  heat  waves,  promote 
innovative financing  tools  for energy efficiency  measures and  showcase 
how  energy  sharing  and  energy  communities  can  effectively  alleviate 
energy poverty (Q4 2026); 

31 Split incentives happen when landlords lack motivation to improve housing as tenants gain most of the 
benefits but cannot make the changes themselves. 
32 Between 2026 and 2032, the Social Climate Fund will provide up to EUR 86.7 billion to help vulnerable 
people and small businesses who are most affected by rising energy and transport costs.   
33 The Regulation on the modernisation of Cohesion Policy incentivizes Member States to increase funding 
to affordable and sustainable housing, with a focus on households affected by energy poverty. 
34 LIFE Multiannual Work Programme 2025-2027 
35 EUR-LEX 32023H2407 

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o  continue  providing  technical  assistance  and  additional  guidance  to 
national,  regional  and  local  authorities  to  effectively  target  vulnerable 
citizens through policies and measures (2026-2028); and 

o  help  national,  regional  and  local  authorities  reach  out  to  citizens  facing 
energy poverty with  efficient measures  by  funding  new projects  under 
the LIFE programme which address energy poverty. It will take tailored 
communication and information actions to inform vulnerable and energy-
poor citizens on cost effective energy saving opportunities (2026-2027). 

Action 9: Protecting vulnerable citizens from disconnections  

For  many  EU  citizens,  including  those  already  facing  energy  poverty,  the  inability  to  pay 
energy  bills  is  an  additional  pressing  concern.  The  risk  of  being  disconnected  from  their 
electricity and gas supply, seriously impacting their quality of life and health, including mental 
health. In 2024, around 31 million Europeans were late on their utility bills36. 

The  Commission  will  engage  with  Member  States,  national  regulatory  authorities,  energy 
suppliers, consumer organisations and other relevant stakeholders to set up systems at national 
level  to  identify  early  warning  signs  when  households  have  difficulty  paying  their  energy 
bills. The aim is to help energy companies step in and offer support to such households before 
the  problem  gets  worse.  In  addition,  the  Commission  will  promote  good  practices  on  the 
prevention and protection from disconnections, including debt-management schemes.  

Goal 

Result 

How 

Better protection for vulnerable and energy-poor citizens at risk of energy 
disconnections, through early-warning and debt management schemes. 
Fewer  disconnections;  consistent  protection  for  vulnerable  consumers  across  the 
EU; reduced vulnerability; improved social justice, health and well-being. 
The Commission will produce support guidelines and organise training courses for 
national  and  local  authorities  on  designing  and  implementing  disconnection 
safeguards,  and  promote  best  practices  via  targeted  workshops,  events  and 
publications (Q2-Q3 2026); and will inform about available support with dedicated 
communication actions (throughout 2026). 

PILLAR IV: IMPLEMENTING THE EXISTING EU LAWS 

European  citizens  benefit  from  strong  consumer  protection  thanks  to  EU  laws  –  however, 
implementation  remains  uneven.  Without  strong  implementation  on  the  ground,  the  gap 
between the EU ambition and people’s lived experience will persist. Local authorities have a 
key role in supporting and engaging with citizens, but they are often insufficiently involved in 
policy development and lack the powers and means to deliver measures to citizens.  

The  Commission  will  work  with  Member  States  and  the  relevant  stakeholders  to  help 
implement and enforce EU laws – in particular, by adopting guidance and technical analysis 
on energy communities and self-consumption including an action plan on energy communities; 
protection of vulnerable customers and customers in energy poverty from energy disconnection 
and  during  gas  phase-out;  the  summary  of  the  key  contractual  conditions;  supplier  risk 
management;  market-based  retail  prices;  remuneration  of  flexibility  in  retail  contracts; 
technical rules for supplier switching.  

36 Eurostat, ‘Arrears on utility bills’, February 2026. 

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Implementation  cannot,  of  course,  happen  without  taking  into  account  all  the  different 
stakeholders. That is why, in order to achieve all the objectives set out in this communication, 
it is essential to have strong interaction and engagement between the Commission, Member 
States and citizens themselves, as well as with civil society, regulators, industry and academia. 
To this end, the Commission will streamline existing initiatives and increase the visibility of 
existing  support  tools – such  as  the  Citizens  Energy  Advisory  Hub,  the  Energy  Poverty 
Advisory  Hub,  the  Covenant  of  Mayors,  the  EU  Islands  Initiative,  the  Coal  Regions  in 
Transition  Initiative  and  the  Energy  Behaviour  Forum  –  upgrading  the  existing  Citizens 
Energy  Forum  to  a  focal  point  for  sharing  best  practices and tracking  progress on 
implementation.  The  Commission  will  also  issue  guidance  for  Member  States  to  empower 
cities, supporting them to unlock the full potential of local authorities in delivering the clean 
energy  transition.  Through  national  consumer  organisations,  the  Commission  will  give 
particular  attention  to  citizen  engagement,  ensuring  consumers  are  informed  of  their 
rights and the opportunities available within the EU energy market.  

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