FT: Remote work recommendation planned for Europe

The European Commission intends to recommend remote work and the use of public transport to EU countries in order to reduce the use of fossil fuels. The background is the energy price shock caused by the Iran war, the effects of which the member countries are currently struggling with. It tells about it, among other things Financial Times.

Next week, the Commission will present measures aimed at reducing energy demand, improving energy efficiency and promoting the transition to clean electricity. According to the document seen by the FT, the aim of the measures is to bring “immediate relief” to high energy prices.

The recommendations are based on measures that were implemented during the energy crisis caused by the Russian war of aggression. The purpose of the actions is to reduce dependence on fossil fuels and encourage the use of green energy.

According to the document, companies should be encouraged to have at least one mandatory telework day per week in those sectors where it is possible. In addition, the commission recommends subsidizing public transport and reducing the value added tax on heat pumps and solar panels.

The Commission also intends to set “ambitious” targets for electrification, but the document still has gaps and is unfinished in these areas, among others.

To achieve the electrification goals, the Commission is helping member countries to develop “social leasing models for clean and efficient technology”, such as electric cars, heat pumps and small batteries.

EU officials emphasize that these are recommendations, not regulations.

“If we face an energy shortage, it’s our responsibility to make sure citizens know how to reduce consumption. We don’t micromanage people’s lives,” one official stated.

Similar recommendations were given in 2022, when companies and consumers were urged to reduce heating by one degree.

Recommendations to reduce oil and gas consumption are part of a wider package that aims to address increased energy costs. The package includes, among other things, the electrification of the energy system and closer cooperation in the procurement of fossil fuels. According to the document, other measures, such as solving aviation fuel availability problems, are still being developed.

Although the recommendations are mostly non-binding, the Commission is preparing two legislative amendments to reduce costs.

The first concerns changing the rules of the electricity market in order to lower electricity transmission costs. The change includes, for example, the monitoring of the cost efficiency of electricity grid operators and recommendations on the fees for heavy industry.

Another goal is to change the directive so that electricity is taxed more lightly than fossil fuels. Member states would also be given the opportunity to reset electricity taxes for energy-intensive industries.

According to the document, the commission also helps countries in planning price ceilings and income subsidies. It also assesses the windfall taxes on excess electricity profits set by member states, but does not propose an EU-wide tax that some member states have hoped for.