October 6, 2022

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The European Commission proposes mandatory cuts in energy demand

The European Commission proposes mandatory cuts in energy demand

The proposal is due to be formally presented by European Commission President Ursula von der Leyen, during her September 14 speech. In the draft, the content of which was quoted by Bloomberg, there is a clause that says the European Commission wants to introduce An “exceptional and temporary” tax on excess profits generated by oil, gas, coal and refinery companies.

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Will there be a limit on energy consumption?

Plans also include Reducing energy demand by reducing consumption And the introduction of a mandatory reduction in demand during peak hours. The European Commission also wants to limit the excessive profits made by companies producing energy from non-gas sources. This can be achieved by imposing price controls on electricity produced from renewable energy sources, lignite and nuclear power.

The proposed changes will only take effect if all EU member states agree to them.

European Commission crisis plan

In early September, Ursula von der Leyen announced in a press releaseThat the EU wants to fight the energy crisis in Europe, among other things, introduce a cap on the price of gas from Russia, reduce electricity consumption during peak hours, impose new fees on oil and gas companies, and impose a revenue cap on companies producing electricity at low costs.

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