EU mulls emergency power cuts, price caps, profit grab…, Energy News, ET EnergyWorld

The European Union (EU) will pursue sweeping measures to reduce electricity consumption and cap electricity prices as part of an emergency response to curb soaring energy costs that are sending shockwaves in the economy of the region.

The EU’s executive arm plans to propose that the bloc’s 27 member states limit excessive revenue from companies producing electricity from sources other than gas and use the profits to support consumers, the president of the EU said. the Ursula von der Leyen Commission. This would be done by imposing a price cap on electricity produced from technologies such as renewable energy, lignite or nuclear energy.

The unprecedented energy market entry plan also includes a tax on fossil fuel producers, a price cap on Russian gas imports, measures to increase liquidity for energy companies if needed and a mandatory target reduction in electricity consumption. The EU is under increasing pressure to curb soaring energy prices and avoid social upheaval as the heating season approaches.

“We are facing astronomical electricity prices for households and businesses and enormous market volatility,” von der Leyen told reporters in Brussels on Wednesday. “Therefore, we will come up with a set of immediate measures that will protect vulnerable consumers and businesses and help them adapt.”

The plan will be discussed with member states at an emergency meeting of EU energy ministers on Friday.

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