Factbox-What Are EU Countries Doing to Counter Energy Price Rises?

What Are EU Countries Doing to Counter Rising Energy Prices in 2024?

Measures Taken by European Union Governments to Address Energy Price Increases

BRUSSELS, April 22 (Reuters) - The European Commission will set out plans on Wednesday to cut electricity taxes as it seeks to reduce the price impact of the Iran war and to coordinate the refilling of countries' gas storage ahead of the increase in heating demand later this year.    

Below are some of the measures deployed so far by European Union governments since the disruption caused by the Middle Eastern conflict, which erupted at the end of February, began driving up energy prices.

Germany

Price Volatility Controls

Berlin decided not to subsidise prices, but to limit volatility by allowing petrol stations to increase prices only once a day at midday (1100 GMT).

Enforcement and Penalties

They can cut prices at any time. Breaches could be punished with fines of up to 100,000 euros ($108,000).

France

Targeted Support Measures

France's government has opted for support measures strictly targeted at the sectors most in need, marking a sharp contrast with sweeping energy price caps that badly strained public finances after Russia's 2022 invasion of Ukraine.

Fuel Subsidies and Household Benefits

It has announced over 70 million euros in fuel subsidies for the transport, farming and fishing industries for April in addition to a 150 euro benefit for 3.8 million low-income households to help pay energy bills.

Italy

Excise Duty Reductions

The Italian government has set aside some 417.4 million euros ($480.34 million) to cut excise duties on petrol and diesel until April 7, but prices have changed little and industry lobbies are pushing for more effective steps.

Poland

Tax Cuts and Price Caps

Poland announced on March 26 it would cut fuel taxes, cap pump prices and could pursue a windfall tax on energy companies. 

Romania

Markup Caps and Export Limits

Romania introduced a cap on markups to fuel prices ‌and put a limit on fuel exports for six months. The ​measures can be extended by three months at a time. The government also ​approved a 652 million lei ($147.23 million) ​state ⁠aid scheme to offset part of the cost of gasoline for road transporters of cargo and passengers ⁠until ​year-end. 

Spain

Economic Relief Measures

The Spanish government proposed measures worth 5 billion euros ($5.8 billion) to counter the economic impact of the Middle East conflict on local energy prices. The measures, which require approval from parliament, include the reduction of value-added tax on electricity bills to 10%, cutting fuel prices by ​up to 30 cents per litre and granting a fuel subsidy of 20 cents per litre ​for the farming and transport sectors, which are some of the most exposed to the sharp price spike.

Hungary

Price Caps and Supply Assurance

Hungary, ahead of elections on April 12, decided to limit fuel ​prices to shield ‌private consumers and businesses ​and release state ⁠reserves to ​ensure supply. The ​cap applied for vehicles ​registered in Hungary.

Ireland

Excise Duty Reductions

Ireland will cut excise duty by 15 euro cents per litre on petrol and 20 ​cents on diesel until the end of May ​as part of a 250 million euro ($290 million) package that took effect from midnight on Tuesday.

(Reporting by Jan Strupczewski; editing by Barbara Lewis)