EU energy ministers have given the European Commission until mid-September to propose emergency measures to tackle soaring energy prices – including a price cap on non-gas power sources and a “solidarity contribution” from fossil fuel companies.
After a meeting of EU energy ministers on Friday (9 September), the Czech EU Council presidency said the Commission should propose “capping the revenues of inframarginal electricity producers”, such as those using coal, nuclear or renewables.
Energy commissioner Kadri Simson told reporters that a planned windfall tax on fossil fuel companies’ profits would raise revenue to be invested into renewables. A price cap on inframarginal power sources would be set at a level that “preserve[s] incentives” for renewable energy producers, she added.
Cuts to electricity demand, a “gas price cap” and “emergency liquidity instruments” to help energy companies meet margin calls are among the other interventions energy ministers have said should be in the proposal.
Industry body WindEurope had warned against windfall measures being imposed on wind power companies ahead of the meeting.
Another version of this story first appeared on Windpower Monthly’s sister site, ENDSEurope.