Struggles with heights electricity prices The EU Commission wants to provide mandatory aid measures for member states. The 41-page draft regulation, which Süddeutsche Zeitung is available, requiring governments to, among other things, skim excess profits from low-cost power plants and use the proceeds to provide relief to households and businesses facing energy costs. Change “X” to project important goals and limits, meaning they are not yet set. However, it is clear that the authorities in Brussels rely on strict regulations and do not want to make recommendations to the member states.
The Commission is likely to present the final regulation this Wednesday. On that day he becomes the head of the government Ursula von der Leyen also inside Strasbourg European Parliament will deliver his annual State of the EU speech, where initiatives against high energy prices will also be discussed. For EU law to enter into force, the governments of the member states must agree. The Czech government wants this to happen by the end of the month. The Czechs will continue the business until the end of the year Council of MinistersThe legislative body of EU governments.
The draft regulation would set a uniform cap on the price per megawatt-hour that low-cost power plants — suppliers of green, coal and nuclear power — are allowed to earn from electricity. Is the price to electricity exchanges larger, the difference goes to governments that fund aid programs. The approach is similar to the model the federal government wants to implement anyway.
Oil, gas and coal companies should contribute jointly
These cheap power plants are currently making huge profits because the market price is based on the cost of the most expensive power producer. And these are gas plants. As a result, the price of gas also increases the price of electricity. The latest draft does not yet have an upper limit number, but in previous drafts of the commission, the limit was set at 200 euros per megawatt hour. Not only trading on the stock exchange, but also contracts passing through the stock exchange should be recorded.
In addition, the Commission wants to collect a solidarity contribution from oil, gas and coal companies. This should be based on how much 2022 has increased. profit compared to the previous year. The EU wants to set a minimum tax rate, governments set the exact amount. The proceeds will be used, among other things, for programs to help citizens and energy-intensive industrial sectors.
In addition, the regulation sets a mandatory goal of reducing electricity consumption during peak hours. A specific number is also missing here, but previous drafts have aimed for five percent. Discussions between EU governments on the regulation are likely to be difficult at times. For example, at last week’s meeting of energy ministers, some governments argued against making the savings target mandatory. There should also be a debate on the height of the price ceiling for cheap power plants.