ENTSO-E publishes initial comments on the European Commission’s Electrification Action Plan and Proposal for a Regulation on Future Proof Electricity Bills  

Brussels, 23 July 2026 

The European Commission’s Electrification Action Plan confirms a simple truth: the electrification of our economy will be the key catalyst for turning Europe’s competitiveness, energy security and decarbonisation ambitions into reality. 

ENTSO-E welcomes the recognition that electrification and grid development must go hand in hand. Every electric vehicle, heat pump and newly electrified industrial process depends on a resilient and affordable power system. So does meeting increasing electricity demand, such as from data centres or electrolysers. The success of the Electrification Action Plan will ultimately depend on three factors:  

✅ Facilitating the necessary investments in grid infrastructure, with adequate financing, permitting acceleration and strong supply chains. 
✅ Developing flexibility in energy sources and use of the grid. 
✅ Smarter management of connection queues. 

Affordability requires investment in Europe’s grids 

ENTSO-E also welcomes the accompanying Commission proposal to future-proof electricity bills. It supports key principles for network charges that are cost-reflective, transparent and non-discriminatory, alongside fair electricity taxation and accelerated deployment of smart meters to unlock flexibility and improve grid observability. At the same time, delivering Europe’s electrification ambitions requires striking a balance between affordability and financing the needed grid investments. Simple cost efficiency should not be the only efficiency measure, as it could be counterproductive. Incentives should support the whole range of policy objectives.   

Four improvements to secure Europe’s electric future 

To realise the proposal’s full potential, ENTSO-E initially recommends four targeted amendments: 

  • Ensure investor-attractive remuneration frameworks that provide market-based and risk-reflective returns, enabling the investments needed for Europe’s future electricity system.  
  • Broaden incentives beyond cost-efficiency to reward contributions to security of supply, market integration, resilience, grid stability and cybersecurity, all of which create value for consumers and the wider economy.  
  • Preserve flexibility and subsidiarity by allowing national regulators to design tariff structures that reflect local system realities while applying common European principles.  
  • Encourage tailored efficiency measures rather than mandatory one-size-fits-all benchmarking approaches to adequately reflect differences between European transmission systems.  

ENTSO-E stands ready to work with the EU institutions, regulators and stakeholders to ensure that Europe’s power system remains the backbone of a competitive, secure and decarbonised economy. Behind every electric future is a powerful grid. 

Please find ENTSO-E’s initial comments on the European Commission Proposal regarding future-proofing electricity bills in the Union here.