EU Considers Electricity Price Cap

The European Commission’s proposals to tackle surging energy prices could include a price cap for certain non gas power generators, according to a Commission document showing the early assessment of options.

• The price limit would help raise revenue that governments could use to lower energy bills for consumers. The document suggests the cap should be rolled out alongside an EU-wide reduction in electricity demand.
• This scheme would not be compatible with existing windfall tax policies in countries such as Italy.
• The document is not recommending a price cap on natural gas prices, as some member countries wanted.
• The EU ministerial meeting takes place on Sep 9, with the proposal likely on Sep 14.