The European Commission today published a communication on energy efficiency.

The European electricity industry remains committed to playing its part in energy efficiency. Energy efficiency is essential to increase the EU's competitiveness, to help electricity customers manage their consumption and costs and to contribute to the decarbonisation of society at large. Furthermore, energy efficiency can be a viable business opportunity for hundreds of supply and distribution companies across Europe. Our industry is therefore already promoting measures that help customers optimize their energy consumption and save energy.

The development of such new business models, including energy efficiency services and decentralized generation, requires energy legislation that is properly implemented and forward-looking. It also requires a focus on cost-effectiveness: energy efficiency must be implemented at the lowest possible cost for our customers and for society in general. This means that:

• In the run-up to 2020, the EU's energy efficiency policy should focus on two key issues: implementing existing legislation and strengthening the EU Emissions Trading Scheme (ETS) so that it can provide the impetus to low-carbon investments, including energy efficiency on the supply side. As recognized in today's Communication, a structural reform of the ETS will lead to investments in energy efficiency in a market-based and therefore cost-effective manner for the sectors covered by the ETS, including the electricity sector.
• For 2030: The approach in the 2020 framework includes a wide range of overlapping tools - some command and control, others market-based - to achieve the agreed targets. This has undermined overall cost-effectiveness. EURELECTRIC has therefore repeatedly called on the Commission and EU Member States to learn from the lessons learned and adopt a more streamlined approach after 2020. For the supply side, this means that the ETS must be the main driver for investments in energy efficiency, based on an ambitious greenhouse gas reduction target of at least 40%. For certain demand-side sectors, which are not always sensitive to price signals, bottom-up regulation targeting specific actions for specific sectors may be necessary. Finally, the electrification of the heating/cooling and transport sectors - as envisaged by the Commission in its 2050 roadmap - will also ensure more efficient energy use and enable the decarbonisation of these sectors.