Europe's response to the Iran war energy crunch
The European Commission published a package of measures on Wednesday seeking to offset surging energy prices, as countries grapple with the biggest shock to energy markets in history from the Iran war.
Here's how the European Union plans to respond.
ELECTRICITY FIRST. Central to the EU proposals is a focus on reducing reliance on oil and gas, to cushion against future fossil fuel supply disruptions and price spikes.
The Commission set out plans on Wednesday to change EU tax rules, to ensure electricity is taxed below natural gas, confirming draft plans previously reported.
That aims to incentivize consumers and companies to replace systems running on gas with heat pumps, and industrial machinery that runs on electricity.
The proposal will also make it easier for governments to cut energy-intensive industries' and vulnerable households' electricity taxes to zero, to curb bills in the near term.
Brussels will make legal proposals to amend the tax rules in May. EU tax rules are politically difficult to change, because they require unanimous approval from all 27 member states.
Electricity taxes and levies in the EU are, on average, around twice as high as those for natural gas, according to analysis by think tank Strategic Perspectives.
The Commission will also propose an electrification target before summer, to push industries to switch from fossil fuels to electricity.
OIL AND GAS STOCKS. The European Commission will coordinate countries' efforts to fill gas storage in the coming months - including the timing of purchases.
The aim is to avoid price spikes, which could be caused by companies rushing to buy at the same time.
Gas storage is currently 31% full, but the EU requires this to rise to 80% ahead of winter and companies have been slow to replenish stocks while prices are unusually high.
Brussels will also facilitate possible releases of oil stocks, by coordinating the timing and volumes in the EU, the Commission said. International Energy Agency members - which include most EU countries - agreed last month to release 400 million barrels of oil from their reserves, in a bid to calm oil markets.
JET FUEL. The EU imports about 40% of its jet fuel, of which half comes via the Strait of Hormuz. Airports have warned Europe could face jet fuel shortages within weeks.
The Commission will map Europe's transport fuel supply and stocks and step in to optimize the distribution of fuel to avoid shortages, it said. It will also consider reviewing the EU's requirement for countries to hold at least 90 days of oil stocks, to include a specific jet fuel requirement.
Brussels will draw up guidance on how to handle potential jet fuel shortages - on issues such as airlines losing airport slots due to cancellations and the EU's anti-tankering rule, designed to prevent planes from loading extra fuel in cheap locations.
The European Commission will also map Europe's refining capacity and introduce measures next month to ensure that existing capacity is fully used, it said.
'IMMEDIATE RELIEF'. The EU proposals include a list of recommendations to provide "immediate relief", although it will be up to individual governments to take them up.
They include delaying nuclear power plant closures, financial help to quickly install plug-in batteries and solar panels, and reducing the price of public transport.
STATE AID. Separately to the proposals published on Wednesday, the EU is preparing plans to let countries subsidize fuel and fertilizer prices more.
In a draft of these temporary state aid rules, seen by media, the EU would let governments subsidize up to 50% of fuel or fertilizer price increases companies have paid since the Iran war began.
In a bid to avoid massive, untargeted subsidies straining public budgets, only a few sectors will be eligible - including farming, fishing and road transport. The subsidies must be granted this year.
The draft EU plan would also allow a higher intensity of aid to help industries pay their power bills.
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