European governments are struggling to ease the pain of energy costs

European governments favour lower taxes and financial support for vulnerable groups as a way to reduce consumers' rising energy bills. These measures have limited ability to address rising electricity bills. The longer the energy crisis lasts, the more likely it is that the government will turn to policies aimed at utilities, which have already been hit and their profits by similar policies in the UK and France.

Energy prices are unlikely to fall as Europe's efforts to wean itself off Russian gas pose a challenge to policymakers. Measures aimed at consumers are costly for the government because of lower tax revenues and higher public spending. Other measures shift the burden of electricity bills to utilities, such as regulation of retail or wholesale tariffs, mandatory rules for state-owned enterprises or taxes on windfalls.

Failed UK suppliers such as Bulb Energy blamed regulated electricity tariffs for their failures. Electricite de France, which is struggling under new government regulations, issued €3.1bn in new shares to shore up its finances.