EU plans to make amends on emergency energy prices over 30 Sept summit

By ibadmin  | Date: September 15, 2022

EU plans to make amends on emergency energy prices over 30 Sept summit

Reliable sources cite that European Union energy ministers are currently trying to focus on approving new bloc-wide measures aimed at reducing the explosive prices for gas and power at the upcoming emergency summit, which is scheduled to be conducted on September 30.

Ursula von der Leyen, chief of the European Commission is slated to introduce a host of measures, in her speech on September 21, for protecting businesses as well as individuals from the deluge of energy costs, supported by record high inflation.  As it is causing homeowners to deal with skyrocketing bills, while also being responsible for hinderances in industrial activities before the arrival of winter.

Interestingly, Czech Industry Minister Jozef Sikela remains hopeful that the aforementioned emergency summit will provide an excellent opportunity for countries to legalize EU proposals and successfully circumvent conflicts between nations regarding the best way to tackle the crisis.

An initial draft of the Commission proposals included the imposition of a cap of Euros 180 per megawatt for an hour on the revenues of non-gas fueled generators, while also compelling fossil fuel firm in sharing their surplus earnings.

In addition, the draft would also impose heavy taxes on the profits generated by oil, coal, gas, windfall, and refining companies from surging energy prices for the fiscal year of 2022. The tax would be levied on 33% of the companies’ excess profits, which usually accounts up to more than 20% of their average profits accrued over the past three fiscal years.

Further, EU counties would subsequently utilize the inflowing cash to free consumers and companies from burgeoning bills.

The draft also encompasses a mandatory cut down of 5% on energy consumption for all countries during peak surge hours on power prices.

Notably, initial recommendations on redrafting European Commission proposals into final laws would be conducted over intense negotiations for a duration of 2 weeks, thereby facilitating the members of 27 countries panel to reach a common ground, while signifying their approval.

 

Source Credits: - https://www.reuters.com/business/energy/eu-plans-sept-30-summit-greenlight-emergency-energy-plans-2022-09-13/

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