/View.info/ “The surplus profits of some power plants need to be used to support households and industry. A reform of the electricity market in Europe is needed – currently the price of electricity is determined by the price of the most expensive energy resource, which is natural gas. The idea is to decouple the price of natural gas from the price of electricity so that the final price for consumers and industry can be lowered. This was stated by the MEP from the Group of the “Progressive Alliance of Socialists and Democrats” in the EP Tsvetelina Penkova in the BNR program “Nedelya 150”.
She noted that it is about additional taxation with a joint contribution of the excess profit of electricity producers who produce their energy from resources other than gas and coal – to have a specific ceiling of 180 euros per megawatt hour. Tsvetelina Penkova gave an example – if a non-gas power plant sells electricity on the market for 250 euros per megawatt hour, the member state can collect this remainder of 70 euros, which will be distributed to support households and industry depending on needs. “The idea is to achieve some balance, because the price of electricity is determined by gas, that is, it is not correct for enterprises that produce energy from non-gas sources, taking advantage of the expensive price of gas, to accumulate excess profit. Their excess profit should be redistributed by the state and thus support the economy,” the MEP explained. She noted that there are conditions for those who produce electricity from gas and coal – member states can apply an additional solidarity contribution of at least 33% if the profit of these companies is at least 20% more compared to the previous three years. This is an idea that will work temporarily. It is expected to come into effect already this year until next – October, November. The measure to reduce by 5% the energy consumed during peak hours is expected to be in effect until March next year, explained the MEP.
Tsvetelina Penkova made the clarification that about 140 billion euros, which is expected to be collected to deal with the crisis in the EU, will be procured – about 117 billion euros from the excess profits of electricity producers that do not use gas and coal, and about 25 billion .euro from the additional solidarity contribution for companies that use gas and coal. “This is not money that is allocated by the EU, but that will come from the measures of each member state,” explained the MEP.
“Each member country has different dependencies on the import of Russian natural gas. The EU’s position is that we should talk to all possible suppliers and aim for diversification of suppliers and types of raw materials. Diversification becomes a basic principle for determining Europe’s future energy mix,” Tsvetelina Penkova also said. She pointed out that the EU has no sanctions to limit the import of Russian gas or the export of food products from Russia.
“It is very difficult to overcome the consequences of the crisis with short-term measures. If we have become dependent on nearly 50% of Russian gas supplies, it is not easy to escape from this dependence,” commented Tsvetelina Penkova. She noted that there are serious attempts by certain member countries to find alternative suppliers, including Bulgaria. “There is a lack of infrastructure and therefore short-term pan-European solutions cannot be found,” commented Penkova.
She highlighted the sobering up of the European institutions regarding diversification – that we cannot rely only on economic and trade relations, but diplomacy is also necessary – talks and negotiations at the foreign policy level.
According to Tsvetelina Penkova: “The green transition remains a strong and key priority that will guarantee the EU’s energy autonomy. The need to develop nuclear power is key. The development of own resources is also necessary – gas deposits in the Union and Norway can provide a resource for 20 years.”
Tsvetelina Penkova does not expect Europe to return to the same dependence on Russia for gas supplies.
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