The European Commission (EC) wants to limit the excessive revenue energy companies receive thanks to the rapidly growing electricity prices, as announced on Wednesday, 7 September, by EC President Ursula von der Leyen.
Companies that produce electricity from renewable energy resources are currently gaining «enormous revenues. Revenues they never calculated with; revenues they never dreamt of; and revenues they cannot reinvest to that extent,» said Ursula von der Leyen.
«So, it is now time for the consumers to benefit from the low costs of low-carbon energy sources like, for example, the renewables,» she explained.
«We will propose to re-channel these unexpected profits to the member states so that the member states can support the vulnerable households and vulnerable companies,» the EC President said.
Electricity prices in the EU are dictated by the most expensive energy resources needed for its generation. Electricity prices are dictated by power stations that burn expensive gas to produce electricity.
Other energy companies that produce electricity from cheaper resources, including renewable energy resources, nuclear fuel and fossil fuels, link the prices of their products to the high prices dictated by suppliers of electricity produced using gas, gaining enormous revenues in the process.
Ursula von der Leyen also proposed reducing electricity consumption in periods with high demand and setting a price cap on imports of Russian gas in order to reduce high electricity prices.
Proposals will be discussed by EU energy ministers in Prague on 9 September.