“It is inconceivable that (…) those who generate electricity with wind energy, solar energy or coal (…) make additional profits because the price is determined according to the electricity produced with gas”, hammered the German Chancellor.
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Quick, a reform. The German Chancellor announced on Tuesday, September 13, that he wanted a reform of the applicable electricity market “from this winter” in his country, in order to help bring down prices and reduce profits in the sector in the midst of an energy crisis. This topic is currently being discussed at EU level.
The reform desired by Berlin is proposed “in coordination” with the EU and must “apply at high speed”said Olaf Scholz in a speech to German business leaders. “It is inconceivable that (…) those who generate electricity with wind energy, solar energy or coal (…) make additional profits because the price is determined according to the electricity produced with gas”he added.
On the European market, it is the cost price of the last source of electricity mobilized to meet demand, often gas-fired power stations, which determines the price imposed on all operators on the continent. However, the price of gas has soared in the wake of the invasion of Ukraine by Russia, dragging with it that of electricity.
A reform of this system, demanded for a long time by France but which divided the Twenty-Seven, is now almost a consensus within the EU, which discusses its content. The European Commission proposes in particular to confiscate the superprofits of nuclear and renewables, to redistribute them to the most vulnerable companies. The German proposal is “almost the same” as that of the Commission, said Olaf Scholz.