This plan is intended to protect Europe from the electricity price shock

The European Commission relies on saving electricity and a price cap to lower electricity prices in the EU. Apparently, she also wants to skim off high excess profits from electricity producers. This emerges from the first considerations of the authority on the emergency measures against the high electricity prices. The so-called non-paper, which has not yet been published, is available to WELT.

The authors write that the proposals have not yet been agreed within the authority. Neither Vice President Frans Timmermans, who is responsible for climate protection, nor Energy Commissioner Kadri Simson agreed to the proposals.

Von der Leyen's employees are obviously counting on Europeans saving electricity in a coordinated manner. The savings measures could be based on the targets for gas savings that the EU countries have agreed on. The member states have set themselves the target of reducing gas consumption by 15 percent between August 2022 and March 2023.

Among other things, private households could get money for reducing their electricity consumption compared to the previous month or the previous year. "This approach could allow consumers to be targeted who do not have smart meters or similar devices installed," the paper says.

However, it is not enough to simply reduce overall consumption, the authors continue. Above all, it must be about reducing consumption at peak times. The reduction in consumption would have to take effect when electricity is scarce and prices are high.

In addition, the Commission officials want to put a price cap on electricity generation. There should be a maximum price for electricity that is generated particularly cheaply from sun, wind, water or nuclear power. The price limits would apply to power generation "which have lower operating costs than gas-fired power plants," the paper said. The goal is to make the profits of these technologies independent of the operating costs of the most expensive power generators.

After the price of gas, the price of electricity is now also rising to unprecedented heights. The EU Commission now wants to intervene with an emergency operation. But many cities are already reacting with drastic austerity measures.

Source: WELT/ Achim Our

Apparently, the Commission wants to design this price cap in the form of an excess profit tax and skim off the profits of companies that generate electricity comparatively cheaply but sell it at high prices. The tax revenues should be used to support electricity consumers in a targeted manner. "The infra-marginal price cap would provide member states with the financial resources to intervene in retail electricity prices," the paper says. For example, the member states would have greater legal certainty "to protect certain types of consumers from the impact of high electricity prices through regulated prices".

According to the paper, only a combination of the three measures of saving electricity, price caps and redistribution can achieve the effect.

Robert Habeck and the other EU ministers responsible for energy want to discuss emergency measures next Friday (9 September). However, it is not yet clear whether they will actually come to an agreement. Because the Member States are far apart when it comes to appetite for market intervention. "I wouldn't expect a great decision next week," said an EU diplomat on Thursday.

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