European Union leaders will direct the European Commission to propose measures to lower electricity prices at a summit later this month, addressing concerns from heavy industry about factory closures. The heads of government plan to examine all components of wholesale and retail electricity prices during the March 19 Brussels gathering, according to a draft statement.

The move comes as stubbornly high power prices have become a top political priority, with energy-intensive sectors blaming them for losing ground to competitors in China and the US where energy costs are lower. The ongoing conflict involving the US, Israel, and Iran has further complicated matters, driving up oil and gas prices and adding pressure on European manufacturers.

Leaders will also demand that an upcoming review of the EU Emissions Trading System reduce both price volatility and its impact on electricity costs while preserving its role in stimulating clean investment. The commission is scheduled to propose revisions to the emissions trading law in the third quarter of this year, as the carbon market faces mounting criticism from energy-intensive companies and some member states.