STRASBOURG, FRANCE / RankWire.AI / – European Commission President Ursula von der Leyen has proposed establishing a more unified framework for collective EU energy purchasing in response to significantly rising fuel prices. She explained that a new task force would consolidate energy demand across member states and designate a market operator to oversee joint procurement. This initiative seeks to advance the bloc beyond its existing system of matching buyers with sellers. Von der Leyen announced these measures during a European Parliament discussion ahead of the European Council meeting scheduled for October 15 and 16.
According to von der Leyen, European gas prices have surged by 140% since the end of February, while diesel prices have doubled. She highlighted that increased imported fossil fuel costs have added approximately €100 billion to Europe’s expenditure without any increase in energy supply. The European Commission intends to extend a temporary state aid framework aimed at industrial sectors under the greatest strain and also supports targeted assistance for vulnerable households. As examples of this approach, she cited energy voucher programs in France and Romania.
Alongside the procurement proposal, the European Commission is also implementing measures related to energy supply and refining. On October 2, G7 members agreed to release 100 million barrels via the International Energy Agency over a four-month period, with a focus on a substantial diesel release during the initial 20 days. Additionally, the Commission will grant exporters an extra year of flexibility under EU methane regulations. Von der Leyen stated that this measure would help reduce additional costs during the ongoing market volatility.
Supply coordination efforts gain prominence
A strategic dialogue with European refineries will be initiated by the European Commission to address costs and supply demands. Energy Commissioner Dan Jørgensen and Defence Commissioner Andrius Kubilius will lead these discussions. Von der Leyen mentioned that the dialogue would also encompass supply considerations for defense needs. She pointed out the considerable disparities among national energy markets, noting that electricity prices can range from approximately €145 per megawatt-hour in some member states to about €70 in others, depending on the energy mix.
The new joint energy procurement task force builds on previous efforts to coordinate EU energy purchases, particularly after Russia sharply curtailed gas supplies in 2022. During that period, demand was pooled across member states to secure supplies. Von der Leyen noted that Russian gas once constituted 45% of EU imports, but that share has now decreased to 12%. The European Commission aims to eliminate reliance on Russian gas entirely by the end of 2026 through its current energy policy.
Electrification remains a cornerstone of EU energy strategy
Von der Leyen also connected the immediate measures to the EU’s longer-term transition towards increased domestic clean electricity generation. She mentioned that over 70% of EU electricity now comes from renewable sources and nuclear power, including wind and solar, which produced more electricity than all fossil fuels combined last year. The bloc added more than 80 gigawatts of renewable capacity in that period, yet projects totaling roughly six times that amount are still awaiting grid connections.
Currently, electricity makes up less than 25% of the EU’s final energy consumption. The Commission’s electrification plan aims to double that share by 2040. According to von der Leyen, expanding electrification could reduce annual fossil fuel imports by as much as €260 billion. The European Commission intends to introduce additional measures in the coming months to facilitate this transition. At their October 15 and 16 gathering, EU leaders are also expected to discuss rising energy prices, supply security, and broader economic challenges.