The European Commission (EC) published, on 14 September, a proposal for a Council Regulation on an emergency intervention to address high energy prices.
The proposal includes four measures:
- An obligation for EU Member States to reduce their gross electricity consumption by 10% (until 31 March 2023),
- An obligation for EU Member States to reduce their gross electricity consumption by at least 5% during selected peak price hours (until 31 March 2023),
- A temporary revenue cap on electricity generators with lower marginal costs (such as renewables, nuclear, lignite and crude oil) until 31 March 2023, and
- A temporary mandatory solidarity contribution tax on 2022 excess profits generated from activities in the oil, gas, coal, and refinery sectors.
According to the EC, these measures seek, inter alia, to mitigate the impact of high electricity prices and protect consumers, while preserving the benefits of the internal market and a level playing field.