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Proposal for amending Regulation (EU) 2019/943: fostering electrification and digitalisation

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Proposal for amending Regulation (EU) 2019/943: fostering electrification and digitalisation

The European Commission proposes reforming the rules of the electricity market to contain network costs and accelerate electrification supported by flexibility, smart grids and digitalisation.

Editorial Team

The European Commission proposes amending Regulation (EU) 2019/943 to include the growing weight of network costs in electricity bills and create better conditions for electrification. The initiative addresses a structural challenge: rising demand, renewables and decentralised generation will require substantial investment in electricity networks, whose costs could increase by up to 60% by 2050 compared with 2022.

The proposal seeks to make better use of existing infrastructure before resorting to further expansion. To this end, it proposes tariffs that incentivise reductions in peak demand and more flexible consumption, while prioritising digital solutions, storage and other alternatives that do not rely on new electricity lines.

Digitalisation is another key pillar. Member States should achieve minimum smart meter coverage of 50% by 2030 and 75% by 2033, while transmission and distribution system operators would strengthen data exchange to optimise networks.

For the built environment, the change is particularly relevant because a more flexible grid can facilitate the electrification of buildings, integrate renewable generation, storage and demand response, and speed up connections in congested areas. The proposal explicitly links these measures to the Electrification Action Plan, which includes specific actions for buildings.

17/07/2026

Proposal for a Regulation amending Regulation-fostering electrification and digitalisation.pdf

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