What does the plan of measures that provides for capping entail

What does the plan of measures that provides for capping entail

The European Commission will propose to the 27 member states a plan of measures that provides for capping the profits of energy companies and directing the money to consumers. Member countries should also reduce net electricity consumption by at least 10% and 5% during peak hours.

In the context of a document consulted by Bloomberg, the Community Executive will propose capping prices for electricity producers that do not use natural gas at 180 euros per Megawatt hour, lower than the ceiling of 200 euros per Megawatt hour that was previously in use.

Thus, the aim is to cap the income of electricity producers from renewable sources, nuclear power plants and biomass at less than half of the market price of electricity, which would mean approximately 460 euros for a Megawatt hour currently.

Moreover, the European Commission will propose to member states to reduce monthly electricity consumption by at least 10% and by 5% during peak hours.

The composition of the energy mix varies from one country to another – this is the biggest challenge in identifying a solution at the level of the entire community block

Also, another measure to be presented by the European Commission aims at a tax on the excessive profits of companies that sell fossil fuels. according to the proposed regulations, EU member countries will introduce a temporary tax on the profits of companies based in the EU and active in the oil, gas, coal and refining industries. The tax will be at least 33% of the additional profits made in fiscal year 2022. The introduction of the tax will remain at the discretion of the member states.

Instead, the Community Executive did not introduce a ceiling for the price of natural gas, an idea that generated debates among EU member countries. Member countries have asked the leadership in Brussels to propose such a cap, but so far they have not reached an agreement on whether the pacesta will apply to all natural gas imports, to pipeline gas imports or to wholesale natural gas transactions.

Therefore, the President of the Commission, Ursula von der Leyen, is to present, on Wednesday, the package of measures of the Community Executive, following that later the governments of the member states will work out the details, after a possible extraordinary meeting of the European Ministers of Energy on September 30 convened by the Czech EU presidency.