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This is how the EU wants to prevent energy protests

The demonstrations in Prague were a warning for Robert Habeck and his colleagues: 70,000 people protested in the Czech capital last weekend because they felt the government had let them down in the inflation crisis.

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This is how the EU wants to prevent energy protests

The demonstrations in Prague were a warning for Robert Habeck and his colleagues: 70,000 people protested in the Czech capital last weekend because they felt the government had let them down in the inflation crisis. In the Czech Republic, where energy infrastructure often dates back to Soviet times, energy prices have skyrocketed in relation to people's purchasing power than anywhere else in the EU.

The fear of politicians across Europe: That the demonstrations are just a foretaste of what is looming when consumers across Europe feel the full force of the high gas and electricity prices in autumn. Last but not least, this fear accompanied Federal Economics Minister Robert Habeck and his counterparts from the 26 other EU member states, who are also responsible for energy issues, to Brussels on Friday. The Czech Republic, which currently holds the EU Council Presidency, convened the special summit of energy ministers.

The urgency probably contributed to the fact that the ministers quickly came to an agreement despite differing ideas. For example, that EU states can skim off the profits of highly profitable electricity producers in order to distribute the income to households and companies that are particularly affected. The profit skimming would affect companies that generate electricity particularly cheaply from sources such as solar energy, wind power, nuclear power and coal. They are currently making particularly high profits because expensive gas-fired power plants set the electricity price for everyone at peak times.

In the coming days, the European Commission is to present a corresponding legislative proposal that will allow the member states to siphon off. He may come as early as Tuesday. Then Commission President Ursula von der Leyen could present the content again with a lot of pathos in her State of the Union speech on Wednesday.

Until then, there are still open questions to be clarified. After the meeting, for example, none of the participants commented on the limit from which profits could be skimmed off. The early draft of a corresponding regulation, which WELT AM SONNTAG has received, envisages skimming off all income above 200 euros per megawatt hour. On Friday, a megawatt hour delivered in the coming year cost 510 euros on the futures market, where future electricity deliveries are traded.

Concrete proposals will also be made next week for a solidarity levy for oil and gas companies, which are currently making particularly high profits. The ministers had agreed on this, as well as on liquidity support for suppliers, who currently have to deposit more money with banks as security when trading in the volatile electricity market.

In some cases, however, those involved have only postponed their divergences into the future. The ministers apparently agreed that saving electricity is a sensible measure, especially in times of peak consumption, to prevent gas-fired power plants from being switched on at all for peak consumption. Using less electricity at these times would save gas and lower the price of electricity overall.

At the press conference after the summit, however, it became clear that Brussels and some member states do not agree on this. Energy Commissioner Kadri Simson said the Commission would like to prescribe mandatory savings targets. On the other hand, the Czech Minister for Economic Affairs, Jozef Sikela, said that he reckoned that the savings targets would initially be voluntary. It is also not yet clear how much electricity is to be saved at peak times.

A rift has also opened up between the member states and Commission President Ursula von der Leyen when it comes to the price cap on Russian gas, who surprisingly called for such a cap last week. According to a summary of the deliberations, further considerations would have to be made.

Habeck and his colleagues have rejected von der Leyen's proposal for the time being. Even before the meeting, it had become apparent that there would be no majority for the proposal, which is also a concession to the Baltic countries and Poland. In recent months, von der Leyen has repeatedly pushed ahead with sanctions against Russia, for example with the oil embargo.

Instead of a price limit for Russian gas, the Commission is now to make proposals for a basic price cap for imported gas so that gas prices in Europe fall. Fifteen member countries spoke out in favor of it, Italian Minister Roberto Cingolani said after the meeting.

However, it is unclear whether the Commission will make proposals on this in the coming week. "Give us time," Sikela said after the meeting. The Commission is fundamentally reluctant to intervene in the market, as is the Federal Government. After the meeting, Habeck said a price cap was only the second-best solution. In the past few days, the idea of ​​an EU price cap for imported gas has been promoted primarily by Italy and supported by countries such as Belgium.

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