Electrification Academy 29: How can we reduce electricity prices with tax reform?

Electrification Academy 29: How can we reduce electricity prices with tax reform?

Electrification is highly efficient – a heat pump needs less than one quarter of the energy used in a combustion heating system such as a gas boiler. But the prices we pay for electricity, and how these prices compare to fossil alternatives, is a deciding factor for affordable electrification. Yet, in many countries, electricity bills bear a higher burden for decarbonization and other policy costs, as well as higher taxes, than fossil fuel bills. This is why many stakeholders and institutions, like the European Commission, are looking at tax reform as a tool to accelerate electrification. On October 30, 2025 we welcomed to the Electrification Academy Angelos Koutsis, Energy Policy Officer at Bond Beter Leefmilieu, and Chris Galpin, Senior Policy Advisor in E3G’s UK Energy Transition team, to discuss: Why is electricity much more expensive than gas in many countries, including Belgium and the UK? Who should benefit from reduced electricity prices? Low-income and vulnerable households? Industry? Both? Why is energy taxation reform important? What would be the impact on public finances? The webinar, led by RAP Senior Associate and Team Lead Marion Santini, also featured RAP's European Programme Director, Louise Sunderland, who recently unpacked the issue of electricity taxation reform in new flagship RAP papers. For reference, here are links to reports discussed in the webinar: 1. Making electricity cheaper: RAP’s eight priority actions: https://www.raponline.org/knowledge-center/making-electricity-cheaper-8-priority-actions/ 2. Making electricity cheaper: Redistributing policy costs for affordable household heat electrification: https://www.raponline.org/knowledge-center/making-electricity-cheaper-affordable-household-heat-electrification/