DrThe European Commission is counting on the provision of electricity and price caps to bring down the price of electricity in the European Union. Apparently, it also wants to deduct high surplus profits from electricity producers. This comes from the authority’s first considerations regarding emergency measures in the face of high electricity prices. The so-called paperless paper, which has not yet been published, is available to WELT.
The authors write that the proposals have not yet been agreed upon within the authority. Neither the vice president, Frans Timmermans, who is in charge of climate protection, nor Energy Commissioner Kadri Simpson agreed with the proposals.
It is clear that the employees of Von der Leyen depend on the Europeans for the provision of electricity in a coordinated manner. Savings measures can be based on gas saving targets agreed by EU countries. Member states have set themselves a target of reducing gas consumption by 15% between August 2022 and March 2023.
Among other things, private households can get funds to reduce their electricity consumption compared to the previous month or year. „This approach could allow targeting of consumers who do not have smart meters or similar devices installed,” the paper says.
However, it is not enough to reduce overall consumption, the authors continue. Above all, it should be about reducing consumption at peak times. The reduction in consumption should take effect when electricity is scarce and prices are high.
In addition, commission officials want to set a cap on the price of generating electricity. There should be a price cap on cheaply generated electricity from sun, wind, water or nuclear power. The newspaper said the price limits would apply to power generation „which has lower operating costs than gas-fired power plants.” The goal is to make the profits of these technologies independent of the operating costs of the most expensive power generators.
Von der Leyen announces the reform of the European electricity market
After the rise in the price of gas, the price of electricity is now also rising to unprecedented levels. The EU Commission now wants to intervene in an emergency operation. But many cities are already reacting with strict austerity measures.
Source: WELT / Achim Our
Apparently, the Commission wants to design this price cap in the form of an excess profit tax and deduct profits for companies that generate electricity relatively cheaply but sell it at high prices. Tax revenue should be used to target electricity consumers. The paper says: „The submarginal price ceiling will provide member states with the financial resources to intervene in retail electricity prices.” For example, member states will have greater legal certainty “to protect certain types of consumers from the impact of higher electricity prices through regulated prices.”
According to the newspaper, only a combination of the three measures of electricity savings, maximum rates and redistribution can achieve the effect.
Robert Habeck and other EU ministers in charge of energy want to discuss emergency measures next Friday (9 September). However, it is not yet clear whether they will actually reach an agreement. Because member states are far apart when it comes to willingness to intervene in the market. „I don’t expect a big decision next week,” an EU diplomat said on Thursday.
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