Brussels wants to raise 140,000 million euros with profit cap for electricity companies

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The European Commission will propose measures this Wednesday to limit gas prices and protect vulnerable consumers

The European Union will present its emergency measures this Wednesday to limit the price of gas. Under these mechanisms, the European Commission will include a limit on the benefits of infra-marginal technologies (including renewable energy sources and nuclear). Its president, Ursula von der Leyen, assured the European Parliament in her State of the Union address that she hopes to raise €140,000 million in this way, which she will allocate to protect vulnerable consumers.

“Millions of Europeans need help. Those heaven-sent benefits should be used to ease their bills,” stressed von der Leyen. The EU is also working to diversify its offerings and will set up a working group to look at how to lower the price of gas. Russia’s supply of the Nord Stream 1 gas pipeline has put further pressure on the European economy.

That is why Brussels has designed mechanisms that can count on “broad support” from the Twenty-seven and can be adopted quickly. Among other things, the European Commission will propose a tax on oil, gas and coal companies that have benefited from high energy prices to protect vulnerable industries and invest in cleaner technologies. Aid is also expected to be approved to provide liquidity to energy companies.

The European Commission will also analyze the changes in the market that it hopes to translate into a reform of the European electricity market by 2023. “Today it is based on outdated principles that no longer hold true. A deep and complex reform will have to be implemented,” he announced.

In the energy future, the EU is very interested in technological progress to generate green hydrogen. And as part of the REPowerEU plan, the continent aims to produce ten million tons of hydrogen by 2030. To achieve this, a European hydrogen bank will be created that will stimulate investments in this energy.

Source: La Verdad

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