European Union states are proposing to use the unexpected profits of energy producers from cheaper sources to support households. This is the outcome of an extraordinary meeting of his EU ministers in charge of energy, held on Friday. At the same time, representatives of national governments have commissioned the European Commission (EC) to prepare other measures, such as EU-wide energy savings and gas price caps.
In other words, the special profit harvest is to limit the power to a certain level. Specifically, what the European Commission is currently proposing. A price of €200 per MWh is most often speculated, which is less than half the current price on the stock exchange.
Profits are supposed to come from low-cost power producers who will benefit most from current high prices. These are based on nuclear and coal-fired power plants and renewable resources.
But this is not the only way to solve high energy prices. Ministers, led by Czech Minister of Industry and Trade Jozef Síkela, have instructed the commission to set a cap on gas prices. Gas-fired power plants are currently driving up electricity prices.
However, ministers stressed at the meeting that such a solution should not threaten the security of supplies to Europe. That means motivating Russia to cut gas to the EU entirely, or discouraging LNG gas traders who might try to sell their raw materials elsewhere. According to the Czech president’s sources, this is a message to the European Commission to watch out for gas price caps.
At the same time, states favored the release of funds to traders on energy exchanges who must make high mandatory deposits for future supplies. Even this step must be specifically proposed by the Commission by mid-September. There will be a special session on Saturday.
EU Member States have also agreed to voluntary electricity savings for now. Czech industry will appreciate the possibility that Brussels will put millions of emissions credits into circulation with the aim of lowering their prices. Eastern European countries were eyeing high benefits, and the Poles wanted to limit their benefits, but they did not find support.
“We have a clear direction on where to go and we expect the commission to make concrete proposals very soon,” Schikela summarized the meeting’s results.Brussels next week If announced, another meeting of energy ministers will be held by the end of September, where concrete solutions will be finally approved.
At the same time, neither measure precludes additional national solutions that many countries, including the Czech Republic, would like to join.