To reduce energy costs, the European Fee is devising a plan to decouple the price tag of energy from the rate of gas.
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European Fee officials are functioning time beyond regulation to make it work emergency mechanism Fee President Ursula von der Leyen declared before this week to decrease vitality selling prices for consumers.
A leaked non-paper displays that the Commission would like to pull distinctive strands. A single avenue is that the revenue margin would be skimmed by electricity corporations that make electrical power from photo voltaic, wind or nuclear ability plants. Currently their rate is calculated on the foundation of gas as the most high-priced supply of electricity, even if their production charges are significantly reduce. As a outcome, they make big profits.
The program is to decouple the price tag of electric power from the price tag of gasoline by introducing a cap for electrical energy from wind, solar or nuclear power. Nationwide governments should use this earnings to lower the electric power payments of citizens and firms.
Specifics on how this ought to be completed have not nevertheless been clarified. What these strength companies get for their energy and in which the cost cap is would be determined in session with national regulators, relying on the energy blend, which differs significantly involving the 27 Member States. This has the edge that it can be implemented rather quickly.
The leaked doc dates back again about 10 days and has been up to date because then. But the good orientation continues to be.
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In addition, a plan is also foreseen to minimize electrical energy need in the EU, in line with the settlement achieved by member states as early as July to lessen demand for purely natural gasoline by 15 p.c by 31 March 2023.
An intervention on the fuel current market is also getting considered. For case in point, the selection of a utmost price tag for Russian gas stays on the table.
There is not but a consolidated proposal. There is powerful strain on the Fee to current concrete proposals for up coming Friday’s extraordinary assembly of vitality ministers in Brussels. But it is equally possible that von der Leyen will only serve clear wine for the duration of his state of the EU deal with in Strasbourg on 14 September. He also plans to existing a proposal early next yr to structurally reform the pricing of the electricity market.
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