The European Union has plans for a deep and comprehensive electricity market reform to overcome the energy crisis caused by the Russian-Ukrainian war, as reported by the President of the European Commission (EC) Ursula von der Leyen.
Among the proposed measures is the cap for revenue of electricity producers. This is planned to secure EUR 140 billion for support of consumers at risk the most and protect them from high prices, Leyen said, describing the situation for the EU.
These measures also include rationing of energy use, temporary state assistance and the separation of gas and electricity prices.
Leyen also announced creation of a new bank to promote investment of up to EUR 3 billion into hydrogen projects.
In order to at least partially prepare for a tough winter, the European Union has formed gas reserves, said the EC president. However, the drop in supplies of Russian natural gas will still leave a mark.
There is also the proposal to tax revenue of energy producers that don’t use gas in electricity production. This measure is intended to divert money towards households and enterprises.
The president of EC also said that large oil, gas and coal companies will have to contribute to overcoming the crisis.
At the same time, she mentioned that the EU has turned to trustworthy suppliers, including U.S., Norway and Algeria.
Additionally, she announced planned legislative regulations to secure supplies of important raw materials and prepare for the growing use of electric vehicles and other environment friendly technologies.
As for Russia, Ursula von der Leyen said the EU will continue exacting pressure on Russia with sanctions for as long as the war in Ukraine continues. She also announced plans to visit Kyiv and meet with Ukraine’s President Volodymyr Zelenskyy and discuss with him Ukraine’s integration in the EU single market and deliveries of aid for Ukraine.
Ukraine’s First Lady Olena Zelenska was present for Ursula von der Leyen’s speech at the European Parliament’s hall in Strasbourg.
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