Germany wants power-market overhaul to dampen soaring prices

“I would argue that extraordinary profits, profits which the companies never dreamed of, could be taxed a little bit higher and could be given back to the people,” Mr Habeck said. Photograph: Odd Andersen/AFP/Getty ImagesGermany’s economy minister proposed tackling soaring energy costs over the longer term by reforming power markets so that prices are no longer coupled to the most expensive supplier.

“We are working hard to find a new market model and the government must be mindful not to intervene too much, he said. “We need functioning markets and, at the same time, we need to set the right rules so that positions in the market are not abused.” Europe’s energy crisis will be high on the agenda when chancellor Olaf Scholz and his ministers meet for a two-day cabinet retreat in Meseberg outside Berlin starting Tuesday.

“We are currently engaged in intensive discussions within the coalition on relief measures because we urgently need them, he said.

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