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EU plans ‘revenue cap’ on power firms, mandatory electricity savings at peak hours
(EurActiv, 8 Sep 2022) A draft EU law for the first time introduces obligatory demand reduction targets for electricity consumption, and places “a revenue limit” on power companies making windfall profits from the energy crisis, according to a leaked proposal seen by EURACTIV.
The revenue cap is the centrepiece of a draft EU regulation on emergency measures to stabilise the electricity market, expected to be unveiled in the coming weeks by the European Commission.
It will be discussed at an extraordinary meeting of EU energy ministers on Friday to address the EU’s response to the energy crisis.
“The Commission proposes a limit of €200/MWh” on so-called “inframarginal” electricity generators, the proposal says in reference to renewables, nuclear and lignite, which have low operating costs and have benefitted the most from high gas prices.
Producers of renewable and nuclear electricity are making “enormous revenues” from the crisis, explained Ursula von der Leyen, the president of the European Commission.
“These revenues do not reflect their production costs. So, it is now time for the consumers to benefit,” she said at a press briefing on Wednesday (7 September).
“We will propose to re-channel these unexpected profits to the Member States so that [they] can support the vulnerable households and vulnerable companies.”
EurActiv, 8 Sep 2022: EU plans ‘revenue cap’ on power firms, mandatory electricity savings at peak hours
