EU ministers debate electricity-excise changes for energy-intensive businesses

The discussion concerned the Commission’s proposal to amend Regulation (EU) 2019/943 on the internal electricity market. The Council’s account describes a more electricity-friendly taxation framework, including the principle that electricity excise should not exceed the rate applying to natural gas. Ministers exchanged views on those tax measures alongside requests for national flexibility in network tariffs.^[1]

In the original proposal, issued on 17 July 2026 as COM(2026) 600, a new Article 18c would implement that electricity-versus-gas tax comparison. The Commission could authorise a Member State to defer the requirement following a justified request based on national circumstances, including its fiscal position. This is the Commission’s July wording, not a claim that ministers have agreed a final negotiating text.^[2]

The original draft also addresses the conditions for energy-intensive-business relief. Its Article 18c(3) would deem electricity supplied to the class identified in Article 17(1)(a) of Directive 2003/96/EC to satisfy Article17(4). The Directive’s underlying framework links reductions below its normal minimum levels to environmental or energy-efficiency arrangements; the proposal targets that conditionality rather than granting every electricity user an automatic exemption.^[2][3]

For multinational groups, the distinction is between a potential change to the legal conditions for relief and an immediate reduction in a local electricity bill. The read proposal does not establish which national measure will apply to an individual site, its energy-intensive classification or a definite commencement date. Those points require the final legislation, applicable national implementation and actual business facts.^[2][3]

The Council says the debate will guide continuing technical work towards a December general approach. Tax and energy teams should therefore monitor the next public negotiating text and any national response before assuming a saving or changing compliance deadlines. The 29 October meeting is a new official policy stage, not enactment of the July proposal.^[1]