the European Union wants to cap the income of producers

The European Union wants to cap the income of energy producers, European Commission President Ursula Von der Leyen said on Wednesday (7 September) during aan energy press conference. Electricity producers “low carbon make massive revenue” inflated by the surge in prices indexed to those of gas, “and we will therefore propose to redirect these windfall profits to support vulnerable people and businesses”, said the President of the European Commission. She also called for a portion of the “massive profits from fossil fuel companies”.

The European Commission also proposes to put in place a price cap for Russian gas.“We need to cut the revenue from Russia that (Russian President Vladimir) Putin is using to fund this atrocious war against Ukraine,” she said. “At the beginning of the war, Russian gas by pipeline accounted for 40% of all imported gas. Today it is only 9%”said the manager.

A measure that may well not please Moscow. Vladimir Putin warned on Wednesday that Russia would no longer deliver oil or gas to countries that cap prices. Cap prices “would be an absolutely stupid decision”launched Vladimir Putin during an economic forum in Vladivostok (Russian Far East).

During his speech, Ursula Von der Leyen also mentioned the establishment of binding measures to reduce electricity consumption during peak hours, as well as the creation ofa solidarity mechanism to help businesses and individuals. Finally, the creation of aid for electricity producers to cope with market volatility is one of the avenues envisaged by the Commission.