EU proposes emergency electricity measures and fossil sector contribution
Measure in Brief
The Commission has proposed a Council Regulation under Article 122 TFEU introducing an electricity emergency tool and an exceptional solidarity contribution from fossil fuel companies. The proposal includes an EU-wide cap of €180 per MWh on inframarginal generators' realised market revenues and a minimum 33% contribution on 2022 fossil-sector profits above a 20% increase relative to the prior three-year average.
Who Is Affected
The measures target inframarginal electricity producers such as renewables, nuclear and lignite, companies in the oil, gas, coal and refinery sectors, and Member States that will collect and redistribute revenues. Households, small and medium enterprises, energy-intensive industries and vulnerable consumers are identified as intended beneficiaries of redistributed revenues and demand-reduction measures.
What Comes Next
The proposal requires a qualified majority vote in the Council, the electricity emergency tool should apply no later than 1 December 2022 until 31 March 2023 with a Commission review by 28 February 2023, and the solidarity contribution will apply for one year after entry into force with a review by 15 October 2023 and reporting starting 1 December 2022.
Sources
Official Documents
- Questions and Answers on an emergency intervention to address high energy prices The Commission proposes a Council Regulation to establish an EU electricity emergency tool and a solidarity contribution on fossil-fuel profits, including a cap on inframarginal revenues and mandatory demand-reduction measures, to shield consumers from high energy prices.
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