EU Commission Lays Out Plans to Combat European Energy Crisis

The EU Commission has laid out three main steps as it plans to intervene in Europe's energy markets to tackle soaring energy costs for both households and businesses. Adding to the main steps are plans for intervention in the electricity markets as well as further talks on potential increased measure.

• The first response is to reduce demand - the Commission proposes an obligation to reduce electricity consumption by at least 5% during selected peak price hours. Member States will be required to identify the 10% of hours with the highest expected price and reduce demand during those peak hours. The Commission also proposes that Member States aim to reduce overall electricity demand by at least 10% until 31 March 2023.
• Secondly - a temporary revenue cap on ‘inframarginal' electricity producers - proposes to set the inframarginal revenue cap at €180 EUR/MWh.
• Thirdly, a temporary contribution from “excess profits” generated from activities in the oil, gas, coal and refinery sectors. - It would be collected by Member States on 2022 profits. The revenues would be collected by Member States and redirected to energy consumers, in particular vulnerable households, hard-hit companies, and energy-intensive industries.
• Adding to the three main steps – the EU is looking to intervene in electricity market rules to allow below cost regulated electricity prices for the first time.
• The Commission is pursuing talks around potential price caps and joint purchasing agreements as well as ways to increase liquidity for energy traders.
• https://audiovisual.ec.europa.eu/en/ebs/live/1 - press conference live here.