Electrifying European industry is a key pathway to reducing emissions and transitioning to climate neutrality. A central enabler of industrial electrification is competitive grid access with predictable costs. Yet currently, network charges and electricity taxes are becoming an increasingly significant and volatile part of industrial electricity bills.
As the legislative debate on the Commission proposal of 17 July 2026 to future-proof electricity bills enters a more active phase in both the European Parliament and the Council, it is essential that the new rules support grid investment without making industrial electrification less competitive.
Building the business case for electrification requires solving key barriers such as high total electricity costs, bottlenecked network access, and insufficient demand low-carbon and/or circular products.
Europe must invest in expanding and modernising its power grids to connect new renewable energy sources, strengthen energy security and support economic growth. The challenge is ensuring that the costs of building the electricity system of the future do not undermine the very investments needed to electrify industry.
To help navigate the way forward, the legislation on Network Charges and Electricity Taxation must strike a balance between financing the expansion and modernisation of Europe’s electricity networks while maintaining affordable and predictable energy costs for industrial consumers.
In its position paper, Cefic outlines how Europe can support the build-out of electricity infrastructure without compromising industrial competitiveness or slowing the industrial transition:
- Safeguard industrial competitiveness and boost electrification;
- Retain national competencies in tariff design;
- Promote system-friendly behaviour while recognising industrial limits to flexibility;
- Ensure that grid investments are cost-efficient and transparent;
- Lower electricity taxes without shifting the fiscal burden to natural gas.
By providing long-term cost visibility, recognising the realities of energy-intensive industries and ensuring that network investments are delivered efficiently, the legislation can strengthen the conditions for industrial electrification while preserving a competitive industrial base.
You may download the Cefic Position Paper on "Future-proofing Electricity Bills in the EU – Priorities for the Chemical Industry" here.