State of the UnionElectricity consumption throughout Europe must be reduced by 10 percent and 5 percent during peak hours. There will also be a price ceiling on gas imports – much needed to tackle the extremely high gas prices – although Brussels needs more time for this. Together with a profit tax on electricity and a solidarity contribution for gas and oil producers, these are the main features of the energy package that Commission President Ursula von der Leyen will be publishing tomorrow.
Von der Leyen was commissioned to study a general price ceiling on gas imports from the energy ministers last Friday, but needs more time to make (legislative) proposals. It is an extremely complex file, say her officials.
There was insufficient support for a price ceiling on imports of Russian gas only. This disguised sanction measure requires unanimity, and Central European countries in particular are afraid that Moscow will immediately turn off the gas tap completely. In principle, there is sufficient support for a price ceiling on all gas imports, although the Netherlands and various other countries fear a gas shortage as a result.
In the past, the Commission itself also said that the European market is too small to be able to determine prices worldwide. The Commission’s energy plans form the bulk of the State of the Union, the Commission President’s annual ‘throne speech’, tomorrow in Strasbourg.
Intervening on all fronts
In a debate in the European Parliament this afternoon, various parties emphasized that the Commission and the Council (member states) must intervene simultaneously on all fronts. After a gas saving of 15 percent agreed earlier this summer (first voluntarily, then mandatory if necessary), imposing a 10 percent energy saving on consumers again can only be done if the surplus profits of the energy companies are tackled sharply, they argued. There is also agreement on this among the Member States.
Power generators have to hand in money
The Commission wants electricity producers who generate their electricity with CO2-free sources such as sun, wind or nuclear fission, to receive no more than 180 euros per megawatt hour (now more than double that) and that oil and gas producers impose a one-off solidarity levy of 33 percent. to get. The revenue from both should be redistributed through Member States to compensate vulnerable households and businesses and to promote the transition to green energy.
In addition, according to PvdA energy spokesman Mohammed Chahim, Brussels must tackle the enormous price fluctuations in the energy market. “It is now worse than in the crypto world, and you don’t need crypto coins for cooking.”
Watch our videos about rising gas prices here:
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