Faced with rising energy prices, the European Commission is considering including a price cap for certain producers.
The European Commission’s proposals to tackle rising energy prices are expected to include price caps for some electricity generators, shows an EC document seen by Archyde.com.
This measure would free up financial resources that governments could then use to finance schemes aimed at reducing energy prices for consumers. Wind and solar farms and nuclear power plants, whose production costs are lower than those of thermal power plants, are particularly concerned by this measure, specifies the document.
Meetings planned to study the issue
The price cap should be implemented alongside a reduction in electricity demand across the EU, the document says. The European electricity market currently ties gas prices to electricity prices. The recent spike in energy prices has generated significant revenues for non-gas power generators with low operating costs.
The EU believes that these revenues should be limited by governments, and that the funds raised should be used to reduce consumers’ energy bills. According to the document, the proposals could be put in place quickly in order to bring “immediate benefit”.
EU energy ministers will meet on September 9 to discuss how to respond to rising energy prices. On September 14, Ursula von der Leyen will present the European Commission’s proposals to cap energy prices, an EU executive said on Thursday.