Citizens Energy Package: helping households in the energy transition

On April 30, the European Commission presented a package of recommendations aimed at protecting and supporting citizens as they participate in the transition to clean energy. Following the communication on the Citizens’ Energy Package and the “AccelerateEU” communication, the EC is now providing detailed practical guidance for citizens and households to further support a more inclusive, resilient, and sustainable energy system. The documents are also directed at EU member states, providing guidance on how to protect vulnerable groups from high energy prices. The four recommendations and accompanying documents aim to protect vulnerable customers and those in energy poverty, ensure competitive retail markets, empower consumers to make informed choices, and support the development of energy communities and self-consumption.

The Commission will work closely with EU Member States, regulatory authorities, industry stakeholders, and civil society to ensure the effective implementation of the package by providing technical assistance and guidance and monitoring progress.

Today’s package includes the following elements:

Recommendation on the protection of vulnerable customers against power cuts and during the phased suspension of natural gas supply: This initiative calls for the early identification of at-risk households to provide timely support, including through tailored payment plans, debt counseling, and energy vouchers, alongside structural solutions such as energy efficiency and access to renewable energy sources. As the EU phases out natural gas, the Commission calls for coordinated planning across sectors with transparent communication and clear timelines. It highlights the central role of one-stop-shop services in helping households adopt cleaner alternatives, while urging EU countries to make full use of EU and national funding.

Recommendation to help consumers find the best deal: This new guide aims to standardize the key terms in energy contracts to ensure that consumers receive clear information. This will help make it easier to compare deals, switch suppliers more quickly, and reduce costs, while making the market more competitive and transparent.

Recommendation on protecting consumers from the risk of supplier insolvency: This initiative provides guidance to national authorities, including regulatory bodies, on how to implement rules for managing supplier risk. The aim is to minimize the risk of supplier insolvency and its negative consequences, which can affect consumers’ energy bills and services.

Recommendation on the empowerment of energy communities and self-consumption: To accelerate and facilitate the uptake of energy communities and maximize the potential of self-consumption, these guidelines aim to facilitate energy communities’ operation across various energy markets and sectors and to enable citizens, as well as individuals, small businesses, and local authorities, to generate and share their own renewable energy sources for self-consumption. It is accompanied by an action plan for energy communities, which outlines a set of measures the Commission will take to support the development of energy communities.

These recommendations are accompanied by a Commission Staff Working Document, which provides EU Member States and stakeholders with context, analysis, and evidence for implementing the recommendations, and highlights a number of best practices related to follow-up actions on the “Accelerating the EU” communication.

The Commission is also publishing a report on market prices for electricity supply and the promotion of flexibility remuneration in retail contracts. Mandated by the Clean Industry Pact and the Action Plan for Affordable Energy, the report will guide and assist EU countries in ensuring that consumers who adapt their consumption to off-peak hours or periods of high renewable energy use are rewarded and protected. It also reiterates the need for competitive retail markets, which are a prerequisite for long-term market sustainability, better choice for consumers, and ensuring demand flexibility. By ensuring that individual consumers benefit from lower bills, this approach will encourage more households to respond to price signals, thereby promoting a more efficient and sustainable electricity system.