EU considers ‘skimming the revenues’ of energy companies to curb price hikes

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Draft proposals include far-reaching ‘emergency’ measures to tackle surging bills and extreme volatility

Another option listed on the paper is to intervene to decouple or limit the impact of the price of gas on the price of electricity. Photograph: Stefan Rousseau/PAA new draft of proposals being considered by the European Union includes “skimming the revenues” of energy companies to tackle surging bills that threaten to cripple households and businesses across the bloc, The Irish Times can reveal.

“It is critical to take stock of market developments and identify possible measures to address high electricity prices driven by high gas prices,” it reads, noting that national measures may no longer be enough. Another option listed on the paper is to intervene to decouple or limit the impact of the price of gas on the price of electricity, changing the situation in which gas sets prices for the market under the EU marginal pricing system.

To address this, the member states will consider intervening to increase liquidity in the electricity market. The paper suggests the 27 may divide interventions into two phases: immediate emergency action with measures that can be quickly agreed upon by the 27; and a second phase of a more “systemic upgrade” of the design of the energy market to prevent recurrences in the future, which will require more discussion.

 

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