The war in Ukraine has upset geopolitics and the world economy. In her State of the European Union (EU) address on Wednesday 14 September, Commission President Ursula von der Leyen assured that Brussels would engage “in-depth reform” of the electricity market to cope with soaring energy prices. To do this, the EU intends to cap the income of “companies producing low-cost electricity”.
According to Mme von der Leyen, who was dressed in the colors of the Ukrainian flag, these companies have been reaping profits since the invasion of Ukraine by Russia “extraordinary” “of which they had not even dreamed”. A situation “unwelcome”, she felt, which happens ” on the back [des] consumers”, whose energy bills have skyrocketed in recent months.
This measure could yield “more than 140 billion euros” to enable Member States to weather the crisis, said the President of the Commission.