The EU Commission wants to channel more than 100 billion euros to households suffering from the energy crisis. President Ursula von der Leyen presented energy measures as part of her policy speech in Strasbourg.
21:13•Updated 21:21
STRASBOURG Today, the Commission presented three ways to curb the effects of the energy crisis in Europe. The main goal is to channel the excessive profits of electricity producers back to consumers.
The purpose is to cut companies’ profits in low-cost production facilities, such as nuclear power plants. In practice, states would collect profits that exceed a certain limit and direct them to reduce consumers’ electricity bills.
Ursula von der Leyen according to which it is not fair to rip profits “off the backs of consumers”.
– These companies receive income that they have not expected and that they have not even dreamed of, he said in his policy speech.
The Commission also proposes a special solidarity fee for companies in the oil, gas and coal sectors operating outside the electricity market.
According to the Commission’s estimate, a pot worth more than 140 billion euros could be collected in total for the benefit of consumers. The actions are intended to tackle the determining effect of gas in electricity price formation.
According to Von der Leyen, the market does not work when Russia manipulates the price of gas.
Mandatory savings targets
The Commission also wants to address the demand for energy by setting binding targets for the member countries to save electricity.
Member states are obliged to cut their electricity consumption by five percent at the time of peak consumption. The Commission also recommends to the member states a general goal of ten percent to save electricity.
– These unprecedented measures are a necessary response to the lack of energy supply and the high price of energy in Europe, the Commission’s Vice-President responsible for climate policy Frans Timmermans said.
Several member countries have hoped for a price ceiling to be set for Russian gas. According to the Commission, a possible price ceiling still requires further preparation.
The proposals appealed to Finnish MEPs
MEP Ville Niinistö considers the Commission’s proposals to be in the right direction. He emphasizes that the income restrictions set for electricity profits must be directed to clean investments and support for low-income earners.
– It is important for Finns and Europeans that the Commission immediately intervenes in this winter’s potential electricity and energy price crisis. I see these actions as quite good.
A member of the coalition Henna Virkkunen particularly praises the measures aimed at reducing electricity consumption.
– At the moment, our biggest problem is that the supply is simply not enough to meet the demand, because different member countries are cutting off Russian energy. The most important thing is to match demand and supply, and the best way is without a doubt to be able to save electricity.
Several countries struggling with the energy crisis have asked the Commission to act more quickly to intervene in the market. Member countries have also seen expressions of opinion against high prices.
– Russia is the main culprit here. The Commission cannot be blamed for Putin cutting off gas supplies to Europe earlier than expected, Miapetra Kumpula-Natri says.
The EU’s energy ministers will discuss the Commission’s proposal at a meeting to be held at the end of September. The Commission’s proposals still require the approval of the member states.
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