Future proofing electricity bills for grid investment and competitiveness

Executive summary

The Commission’s proposal to future proofing electricity bills takes a welcome step by giving digital technologies a stronger role in grid. Digitalisation is central to solving Europe’s grid challenge, but the potential of existing grid capacity remains untapped due to a lack of regulatory incentives. The EU already requires Member States to reward digital and physical grid investments equally[1] – yet only 32% have applied this rule.[2]

We strongly support provisions on smart grid indicators in the text. If well designed, they can genuinely drive progress on digitalisation across Member States.

We also welcome the proposal’s broader direction, including its measures on grid connection, electricity taxation, and smart metering, which together signal the ambition to move towards a network capable of supporting Europe’s competitiveness. Whether this ambition is realised, however, will depend on a number of important adjustments to the current text – several of which we consider non-negotiable if the proposal is to deliver on its own objectives.

On tariff design, several provisions introduce unnecessary rigidity into a system that needs room to adapt to Member States’ differing circumstances. As currently drafted, these provisions risk undermining the very objectives the proposal claims to pursue and require significant revision.

With this in mind, we set out below our key recommendations to strengthen the proposal and ensure it delivers on its stated ambition.

[1] Electricity Market Design Regulation (EU) 2024/1747, Art.18

[2] DIGITALEUROPE, Advancing Europe’s Grid Performance, June 2026, available at link