Europe Is Finally Admitting Electricity Is Overtaxed - CleanTechnica

The article from CleanTechnica highlights a significant shift in European energy policy regarding electricity taxation. A leaked European Commission recommendation acknowledges that electricity in Europe has long been overtaxed and burdened with levies as if it were a polluting end product, despite its growing role as a clean energy carrier essential for economic competitiveness, energy security, and decarbonization. The recommendation urges EU Member States to reduce VAT and excise duties on electricity, remove non-energy levies from electricity bills by funding them through general budgets, and ensure electricity is taxed less than fossil fuels. This marks a meaningful change in framing electricity not just as a consumer good subject to taxation, but as critical infrastructure underpinning Europe's economic future. A key concept discussed is the "spark gap," the ratio between retail electricity prices and retail gas prices, which currently ranges from about 2.5 to 3.5 across Europe. This gap discourages electrification because electricity prices include network charges, policy levies, and VAT that