After Switzerland, the EU is now also setting the course for liquidity support for energy companies in need. Commission President Ursula von der Leyen wants to soften the aid regime again. In addition, an excess profit tax for oil companies and an upper price limit for Russian natural gas are planned.
Commission President Ursula von der Leyen declares war on high energy prices.
After numerous leaks had already been circulated, the President of the EU Commission, Ursula von der Leyen, appeared in front of the media on Wednesday to present the planned measures against high energy prices.
Brussels’ Robin Hood method
First of all, the EU Commission wants to introduce a price cap in wholesale electricity trading. According to von der Leyen, this would affect producers who produce electricity cheaply. This currently affects renewable energies such as wind and solar, but also nuclear power and coal. Because currently the very expensive gas-fired power plants often determine the price of electricity, the sellers of electricity produced from renewable energies, for example, are currently driving the same high prices on the market and, because of the low marginal costs in production, are also making high profits. Von der Leyen spoke of “enormous” profits.
Such non-gas power plants should receive a maximum of €200 per megawatt hour, wrote the «Financial Times» citing a Commission document. The price for one megawatt hour of electricity in Germany on the so-called day-ahead market (i.e. the market for electricity on the following day) is currently around €440. Such a limit would currently halve the profits of the companies concerned. Critics say that this would reduce the incentives to invest in renewable energies, among other things.
The proceeds are to flow to the 27 EU member states, which in turn are to support particularly affected citizens and companies. Some observers therefore also speak of a Robin Hood method, because the Commission wants to take money from the rich corporations and distribute it to the poor citizens.
As a further measure, von der Leyen proposes that the EU introduce a price cap for Russian natural gas. According to her, the corresponding imports currently make up 9 percent, after around 40 percent before the Ukraine war.
In addition, the EU Commission wants to relax its state aid rules so that the member states can grant their energy companies liquidity aid quickly and easily.
“Excess profit tax” for oil companies
Brussels also wants to impose an additional solidarity tax on oil and gas companies. Von der Leyen spoke of a solidarity tax that the companies would have to deliver. This corresponds to a so-called “excess profit tax”.
Finally, the Commission wants to ensure that electricity is saved in the EU. In particular, it is about reducing peak loads. Such is the case, for example, at midday, when all households turn on the stove. Brussels hopes that if the demand for electricity were better distributed, expensive natural gas power plants would be needed less often to meet the entire demand. This would also tend to result in lower prices.
On Friday, the energy ministers of the member states will meet for an extraordinary meeting in Brussels to discuss the five-point plan presented on Wednesday.