EU proposes emergency intervention to tackle high energy prices
Measure in Brief
The Commission presented an emergency, targeted and time‑limited proposal under Article 122 to reduce electricity consumption and to correct power market revenues. It includes an EU-wide reduction target of 10% in electricity consumption with a binding requirement to cut peak‑hour demand by at least 5%, an EU revenue cap of €180/MWh for inframarginal technologies such as renewables, nuclear and lignite, and an exceptional solidarity contribution on surplus profits in the oil, gas and coal sectors.
Who Is Affected
Member States must implement demand reduction measures and will be responsible for collecting and distributing any revenues raised, which can be used to support households, small and medium-sized enterprises and businesses. Market participants affected include inframarginal electricity producers, gas‑fired and coal plants that set wholesale prices, fossil fuel companies subject to the solidarity contribution, and energy utilities facing liquidity issues.
What Comes Next
The measure is proposed as an Article 122 Regulation and foresees Member States collecting the solidarity contribution on 2022 profits above a 20% increase versus the prior three‑year average at a rate of at least 33% and channelling proceeds to consumer support and energy transition investments.
Sources
Official Documents
- Opening remarks by Executive Vice-President Timmermans and Commissioner Simson at the press conference on an emergency intervention to address high energy prices The Commission unveils an emergency proposal to curb high energy prices, including binding peak-hour demand reductions, a 10% EU electricity-consumption target, an EU-wide inframarginal revenue cap, and a fossil-fuel surplus contribution under Article 122.
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