The measure

EU plan to cut energy bills: 50% of meters will be smart by 2030

The aim is to encourage users to adopt more environmentally friendly habits by incentivising consumption during times when energy is cheapest

by Pietro Menzani

Adobe Stock

2' min read

Translated by AI
Versione italiana

Key points

2' min read

Translated by AI
Versione italiana

The European Commission aims to have at least 50% of consumers fitted with smart meters by 2030, with this figure set to rise to 65% by 2033. The aim is to encourage consumption during the hours when energy is cheapest. This is one of the measures contained in the draft EU regulation on energy bills. The measure is expected in July as part of a broader package that should also include the action plan for electrification.

The measure, which is currently only a draft and may be subject to change, forms part of the Accelerate EU initiative. The plan – presented in April and designed to respond to the crisis triggered by the escalation of the conflict in the Middle East – aims to reduce the EU’s dependence on fossil fuel imports and accelerate the transition to ‘cleaner, safer and more affordable’ energy.

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More environmentally friendly consumption

According to the draft regulation, the European Union has set itself the goal of encouraging consumers to behave in a more environmentally friendly manner. The idea of encouraging the adoption of smart meters should be seen in this light: the EU will ask Member States to incentivise users to concentrate their consumption during time slots when energy costs less.

The text states that network users should take greater care to protect the environment by ‘adjusting their energy consumption or shifting it to times and places where cheaper energy sources are available’.

Smart meters

This is where the smart meter, or smart meter, comes into play, allowing users to monitor their consumption and take advantage of lower tariffs during off-peak hours. By measuring and monitoring consumption data, this system helps reduce energy costs for citizens through the implementation of energy efficiency strategies.

The draft regulation prepared by the European Commission also provides that Member States should tax electricity ‘more favourably than natural gas’, so as to ensure that electricity is more cost-effective than gas from a tax perspective, although each Member State will retain the freedom to set its own rates.

Other measures in the draft

Furthermore, it appears that Brussels is taking action on network charges, which account for around a quarter of the average bill, by introducing time-of-use tariffs and criteria for measuring operators’ efficiency. Finally, the draft opens up the possibility of also using cohesion funds to support investments in electricity networks.

“The work,” commented European Commission President Ursula von der Leyen, “begins at home. By reducing energy costs. And by making life easier for businesses across Europe. But it doesn’t end there. Imbalances and overcapacity in global trade pose challenges. We will tackle them head-on at the European Council.”

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