The European Union (EU) also wants to lower energy bills. Brussels proposed on Wednesday to cap the price of Russian gas imported by itself, and the income of nuclear and renewable electricity producers, while taking a share of the profits of gas and oil groups.
“Households and businesses are faced with astronomical prices and enormous market volatility” of electricity, whose prices are indexed to gas prices, noted the President of the European Commission, Ursula von der Leyen, during a meeting. ‘a press conference.
Some electricity producers, which mobilize nuclear power plants, wind power, solar power or hydroelectric dams, “realize massive revenues which do not reflect their production costs” which are “low”, lamented Ursula von der Leyen. She called for redistributing these “unexpected profits” to help “vulnerable” households and businesses.
Reduce demand
The Commission is also aiming for “intelligent demand reduction”, with “a mandatory target to reduce electricity consumption at peak times”.
Producers and distributors of gas and oil, who are making “massive profits” thanks to soaring world prices, are also in the sights of Brussels. “We are going to propose a solidarity contribution for fossil fuel companies, because all energy sources must contribute to solving this crisis”, indicated the President of the European executive.
Member States could use this financial windfall to help consumers but also to invest in clean energy sources.
Capped gas prices?
Brussels also proposes to cap the price of gas delivered to the EU by Russia, in order to “reduce the revenues” used by the Kremlin to “finance this atrocious war against Ukraine”.
Earlier on Wednesday, Russian President Vladimir Putin warned that his country would no longer deliver oil or gas to countries that cap the prices of hydrocarbons sold by Moscow. “At the beginning of the war, Russian gas by pipeline represented 40% of all the gas imported (by the EU). Today, it represents only 9%,” said Ursula von der Leyen.
Czech Trade and Industry Minister Jozef Sikela, whose country holds the rotating EU Council presidency, criticized the idea of capping the price of Russian gas. “It is not a constructive proposal. It is more another form of sanction against Russia rather than a real solution to the energy crisis in Europe,” he said, calling for a rapid decoupling of electricity and gas prices. .
Brussels is also proposing a support mechanism for cash-strapped energy suppliers in the face of crazy volatility on global markets, updating EU rules to allow member states to quickly provide state guarantees to affected companies.