EU exec to propose lower electricity taxes to counter Iran price shock

BRUSSELS, March 20 (Reuters) - The European Commission will propose that EU countries cut taxes on electricity and subsidise prices as a quick way to soften the energy price shock caused by the U.S.-Israeli war on Iran, Commission head Ursula von der Leyen told a news conference.

"In some cases, electricity is taxed much more than gas, up to 15 times more. And this cannot be so. We will propose to lower tax rates on electricity and to make sure that electricity is taxed less than fossil fuels," she said.

"Member states can already make use of state aid measures to compensate for the cost increases of the energy source, and we and we will further flexibilize state aid," she said.

Von der Leyen also said she proposed to leaders financial support to the industry through investments that would help companies move away from fossil fuels.

"We call it an Emissions Trading System (ETS) investment booster. It will have a budget of round about 30 billion euros. It is financed by 400 million ETS allowances. And the aim is to finance projects for decarbonization," von der Leyen said.