Affordable electrification relies on affordable electricity. By reducing the price of electricity, decision-makers can take a commanding step towards kick-starting electrification, lowering energy bills and improving economic competitiveness.

Remedying the disproportionately heavy tax and levy burden placed on electricity, especially compared to polluting fossil gas, calls for urgent action. Nuanced price reform will best equip decision-makers for success and protect households over the course of change.

Structurally reducing energy prices requires a focus on

• Building and operating the least-cost electricity system
• Ensuring the prices paid customers encourage energy efficiency and demand flexibility
• Minimising the amount of taxes and levies on the electricity bill
• Sharing costs fairly between users

Louise Sunderland, Duncan Gibb and Samuel Thomas propose solutions that have quick impact while carving out space to implement long-term reform. These are part of RAP’s eight priority actions that can deliver relief today and lock in lower prices for the long term. The future energy bill for many European households will be an electricity bill. RAP offers recommendations to balance the cost.