EU outlines crisis measures to fight energy price rises as winter approaches

The European Commission has backed down from an initial plan to cap Russian gas prices as the bloc remains divided on whether prices caps would assist with efforts to obtain energy supplies for winter. Story by the Express

The European Union is set to unveil plans on Wednesday to protect citizens and businesses from spiralling energy prices. Proposed measures include skimming off windfall profits from energy companies and imposing cuts in energy usage across the bloc. 

Governments throughout the EU have already introduced hundreds of billions of tax cuts, handouts and subsidies in a desperate attempt to tackle rocketing energy costs heavily influenced by the ongoing war in Ukraine and the sanctions Brussels has imposed on Moscow. 

Rapidly increasing energy costs are fuelling record levels of inflation which in turn is forcing industries to close and causing a massive increase in energy bills. 

On Wednesday, the EU is set to propose a coherent bloc-wide response across all 27 EU member states. 

Major Brand Discounts

According to Reuters, drafts of the European Commission’s show that Brussels intends to skim off the profits of non-gas fuelled power plants in order to raise money for government spending to help citizens with their energy bills. 

Wind farms and solar farms are set to face a cap of 180 euros per megawatt hour (MWh) based upon the revenue they receive for generating electricity. Governments will then recoup any excess cash and recycle it in order to support consumers according to the draft. 

This would cap genrator’s revues at less than half of the current market prices. 

It comes as Germany’s electricity price hit a record high of 1,000 euros/MWh last month.  Continue reading the full story: EU outlines crisis measures to fight energy price rises as winter approaches

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