Electricity price: EU wants to skim off profits and proposes price caps - economy

The revenues from green, nuclear and coal-fired power plants are to be capped at 180 euros per megawatt hour throughout the EU. The market price for electricity is currently well above that because gas power plants are driving it up. The difference should skim off the 27 governments. This prescribes a regulation to fight against the high electricity prices which the EU Commission intends to present this Wednesday. Of the Süddeutsche Zeitung there is a draft. The member states are to use the proceeds to finance aid programs for households and companies that are struggling with energy prices, which a year ago were just in the double-digit euro range per megawatt hour. The Federal Government would like to introduce a similar model anyway.

Earlier versions of the draft law have been circulating in the past few days, but the concrete values ​​are still missing. The regulation is also intended to introduce a solidarity levy for oil, gas and coal companies: governments are to compare this year's profits with the average profits of the three previous years. Increases in excess of 20 percent should be subject to a special tax of at least 33 percent. According to current planning, the fee is only to be levied once, for 2022; this money is also to flow into energy aid programmes.

In addition, the EU law prescribes a binding target for member states to reduce electricity consumption at peak times by five percent. On the other hand, there are no proposals for a price cap for gas imports from Russia, as Commission President Ursula von der Leyen recently suggested. This idea is too controversial among the 27 governments. The German will hold her annual speech on the state of the European Union this Wednesday in the European Parliament in Strasbourg - it will also be about the topic energy walk. The EU energy ministers are to adopt the draft law, which will be presented on Wednesday, at a special meeting on September 30th.

Source link