Reduce the energy bill of citizens and businesses in the EU

Lift 140 billion euros per year. This is the projection made by the European Commission thanks to the establishment of a contribution from energy companies. These funds should be used to help struggling households and businesses.

The institution believes that companies should share the windfall profits that they draw from the current tensions on the markets.

“The profits are going way, way, beyond anything they dreamed of through their investment plans. So it’s not like we’re cutting into the profits they were counting on,” says Frans Timmermans, vice-president. President of the Commission.

Most of this money must come from profit cap low-cost power generation companies like nuclear and renewables. To achieve this, the Commission is considering a revenue limit of 180 euros/MWh.

Fossil energy suppliers are also called upon to participate in this effort. 33% of their exceptional profits should be collected to feed a solidarity contribution.

In the ranks of the European Parliament, some MEPs consider that the Commission lacks ambition and should attack Russian gas.

“This is not going to solve the crisis. We need more measures on the table, some which are obvious such as limiting the bill we pay to Russia, are not envisaged”, regrets the ecologist parliamentarian Michael Bloss.

The other pillar of the strategy proposed by the Commission is to reduce demand in electricity. A strenuous effort by 5% during peak hours is advanced. The institution also suggests that Member States set themselves the target of reducing overall electricity demand byat least 10%.

In the long term, the Commission finally wants to initiate a reform of the energy market by decoupling gas and electricity prices.

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