Nine actions for a citizen centric energy transition

On 10 March 2026, the European Commission issued the Citizens Energy Package, a major initiative designed to ensure that every European citizen—not just a privileged minority—benefits from the continent’s accelerating clean energy transition. The package forms part of the EU’s broader Action Plan for Affordable Energy and responds to the uncomfortable reality that millions of Europeans still struggle with rising bills, volatile energy markets, and insufficient protections. According to the Commission, almost one in ten citizens cannot adequately heat their homes, and more than 30 million report difficulties paying their utility bills on time, illustrating the urgency of reforming how energy markets operate and how consumers are supported.

The Commission argues that Europe must build an energy system that is not only greener and more secure but also more equitable. Electrification, greater integration of renewables, and modern digital tools create opportunities for citizens to save money and participate more actively in the energy system, but only if proper frameworks are in place.

The nine actions are then divided into three pillars: (I) lowering energy bills for households (actions 1 to 4); (II) protecting and empowering consumers (actions 5 to 7); (III) tackling energy poverty and vulnerability (actions 8 and 9).  Despite expectations that the Citizens Energy Package would explicitly address gender inequality in the energy transition, it does not propose actions to do so; instead, it incorporates fundamental measures to enhance the protection of average and vulnerable consumers.

It is worth noting that several of the actions proposed by the European Commission in the Citizens Energy Package have been supported by the FSR “Study on the relevance of consumer rights and protections in the context of innovative energy-related services”, published alongside the Citizens Energy Package.

Action 1: reducing the share of electricity taxes and levies

Action 1 addresses the need to reduce the share of electricity taxes and levies in consumer energy bills. According to the Commission, these charges make up about 25% of the price paid by households and 15% of the price paid by businesses. Member States therefore have the ability—and responsibility—to lower national energy taxes and levies, including removing costs that have no connection to energy, such as public broadcasting fees that in some countries are added to electricity bills. Reducing or eliminating these unrelated charges lowers electricity bills for everyone and is particularly beneficial for vulnerable households.

Action 2: reducing the network cost for local consumers

Action 2 focuses on reducing the network cost for local consumers. Network tariffs are a major component of what households and businesses pay, which account for between one quarter and one third of the final electricity price. EU legislation requires that network operators pass on costs that are cost‑reflective, transparent, tied to the need for grid security and flexibility, and based on actual expenses incurred. In addition, the Commission published guidance on network tariffs in 2025 to help authorities consider targeted incentives in grid tariffs to promote flexible local consumption.

When citizens produce energy for their own consumption—through Energy Communities or share schemes—they reduce pressure on local grids and help avoid expensive infrastructure expansions. The Commission highlights that including flexibility rewards in network tariffs would encourage such local production and consumption. These rewards would lower the energy bills of citizens and communities who generate and share electricity, while also benefiting all network users by reducing the need for new grid investments.

Action 3: boosting the use of clean and energy-efficiency technologies

Action 3 addresses the challenge of boosting the use of clean and energy-efficiency technologies. Although clean and efficient technologies have strong potential to reduce household energy bills, many families struggle to adopt them due to high upfront costs. According to the Commission, heating remains the dominant use of energy in EU homes, representing 62.5% of final residential energy consumption, followed by 15.1% for water heating. These two uses alone account for most household energy costs, meaning that improving heating and hot water systems offers some of the greatest opportunities for savings.

Recognising these gaps, the Commission calls on Member States, industry, and service providers to move beyond grant‑only policies and expand financing options that make clean technologies more accessible through a European Energy Efficiency Financing Coalition. Examples include combining social leasing with mechanisms to cover upfront capital costs, offering “heat as a service” models where consumers pay for warmth rather than buying equipment, or creating flexible tariffs tailored to heat-pump use and long-term maintenance needs.

Action 4: ensure that consumers can easily obtain the cheapest available energy offer 

Action 4 aims to ensure that consumers can easily obtain the cheapest available energy offer and switch suppliers without obstacles. Although EU legislation already gives citizens the right to change energy providers, consumers still lose an estimated EUR 152 per year on average simply because they do not switch. One of the main reasons is insufficient transparency: comparison tools are not always reliable, and some intermediary switching platforms operate with unclear business models, reducing trust and accountability.

To address this, the Commission calls on Member States to require that suppliers provide annual “best tariff advice” based on each customer’s actual energy use. Suppliers should also introduce early‑warning notifications when a customer’s consumption begins to exceed the level assumed in their contract or when a cheaper offer becomes available. These measures mirror practices in other consumer markets and enable households to react quickly, for example, by switching from flexible to fixed‑price contracts to avoid unexpected costs. Also, the Commission plans to adopt technical rules to ensure that all back-office switching operations across the EU can be completed within 24 hours.

Action 5: empowering citizens to produce and share their own renewable energy

Action 5 focuses on empowering citizens to produce their own renewable energy and share it with their neighbours and communities, significantly increasing local autonomy, reducing dependence on external suppliers, and improving long‑term energy affordability. Under EU law, citizens have the right to form energy communities that jointly invest in and manage renewable energy projects such as rooftop solar panels, wind turbines, biogas or biomethane production, and even district heating systems. While more than 8,000 energy communities already operate across Europe, the Commission stresses that their potential remains vastly underused, particularly in rural areas where opportunities for renewable generation and local waste management are substantial. Energy sharing also creates broader social benefits. It allows groups that cannot produce renewable energy themselves—such as tenants, low‑income households, or people without suitable roof space—to benefit directly from local clean‑energy projects.

To support implementation, the Commission will provide guidance to Member States on how to scale up self‑production and energy sharing, including best‑practice examples. It will also adopt an implementing regulation on data interoperability in 2027 to ensure that energy‑sharing processes are user‑friendly and fully automated. Finally, between 2026 and 2027, the Commission will publish step‑by‑step guides to help households, SMEs, farmers, and public authorities set up and manage their own community energy projects.

Action 6: enabling consumers to lower their energy bills through flexible contracts

Action 6 focuses on enabling consumers to lower their energy bills by taking advantage of flexible retail electricity contracts, which reward households for shifting their electricity use to times when prices are lower. According to the Commission, consumers using such contracts can achieve bill reductions of up to 40%, particularly when they shift heating demand to low‑price periods. This consumer‑level flexibility also benefits the wider energy system, reducing the need for additional electricity generation and lowering network costs. At the EU level, the total potential system savings from greater demand flexibility are estimated at EUR 2.7 billion annually by 2030.

To unlock these benefits, flexible retail contracts must be widely available, and consumers must have access to transparent pricing, reliable information, and targeted advice to help them select the contracts best suited to their needs. Technical tools are equally important. To achieve this, the Commission will issue guidance on how flexible retail contracts should remunerate consumers. It will also improve access to the data required for flexibility through an Implementing Regulation on interoperability requirements in 2027 and promote the potential of flexibility and efficiency through relevant projects under the new Partnerships for Better Homes, beginning in 2026.

Action 7: rebuilding consumer trust in the energy market

Action 7 focuses on rebuilding consumer trust in the energy market, which has been weakened by aggressive telemarketing, confusing offers, and the general difficulty many citizens face when navigating energy services. These barriers prevent consumers from benefiting from cheaper or more innovative offers and fuel scepticism toward the retail energy market.

To improve the quality of energy services, the Commission will work with consumer associations, energy suppliers, and regulators to develop a new code of service for energy suppliers. This code represents the first step in countering unfair marketing practices. It will allow suppliers to voluntarily commit to higher standards than those already required by EU law. These commitments include efficient handling of customer complaints, protections for vulnerable consumers—such as those in rural areas—through longer notice periods before disconnection, tailored payment plans, minimum guaranteed supply, and the provision of best‑tariff advice and early‑warning systems. The Commission also recognises that AI and digitalisation introduce both opportunities and risks. While they may enhance efficiency and reduce energy bills, they can also create new vulnerabilities for consumers. As a result, the Commission will assess whether existing rules are adequate for a market increasingly shaped by digital tools.

Another source of mistrust arises when energy suppliers fail financially. In such cases, customers may lose advance payments and may be forced into less favourable emergency contracts. To prevent this, the Commission will issue guidance to national regulators on ensuring that suppliers maintain sound risk management and hedging strategies, helping stabilise the retail market and protect consumers from the fallout from supplier insolvencies.

Action 8: joining forces to reduce energy poverty

Action 8 confronts one of the most urgent social challenges in the EU’s energy transition: the need to join forces to reduce energy poverty. In 2024, around 42 million Europeans, representing 9.2% of the EU population, were unable to adequately heat their homes. This situation affects families and vulnerable groups disproportionately and is considered by the Commission to be both serious and unacceptable. EU law already requires Member States to identify vulnerable consumers, address energy poverty, and implement concrete protection measures. However, the Commission’s assessment of updated national energy and climate plans shows that these obligations are being implemented unevenly across the Union. This inconsistency stems not only from diverse national approaches but also from the inherent challenge of identifying vulnerable households, understanding the different dimensions of their vulnerability, and designing interventions that match their needs.

To help Member States reinforce their national strategies and strengthen their response to energy poverty, the Commission will issue additional guidance and share good, replicable practices. These materials will highlight successful national and local approaches that reduce energy poverty while maintaining incentives for efficiency. For example, best practices will address split incentives, where landlords do not invest in renovations because tenants pay energy bills, as well as digital outreach tools and cross‑sectoral approaches that protect citizens from extreme heat. The Commission will also help Member States develop their national building renovation plans by the end of 2026, in line with the Energy Performance of Buildings Directive (EU) 2024/1275. These plans will identify the worst‑performing buildings—often home to the most vulnerable households—and design tailored renovation policies that reduce energy bills and improve comfort throughout the year. They will also address accessibility needs for older people and persons with disabilities.

Action 9: safeguarding vulnerable and energy‑poor households

Action 9 focuses on safeguarding vulnerable and energy‑poor households from the severe consequences of being disconnected from their electricity or gas supply. For many citizens, especially those already struggling with energy poverty, the inability to pay energy bills is an increasingly pressing concern. In 2024, around 31 million Europeans were late on their utility bills, highlighting the widespread scale of this challenge and the risk it poses to citizens’ well‑being, including their physical and mental health.

To prevent disconnections before they occur, the Commission will work closely with Member States, national regulatory authorities, energy suppliers, consumer organisations, and other stakeholders to establish national early‑warning systems. These systems are designed to identify when households begin to struggle with energy payments, allowing suppliers to intervene early and offer support before financial difficulties worsen. Early action could include payment plans, energy‑efficiency advice, connection to social services, or other forms of tailored assistance.