The European Commission has unveiled five proposals to tackle the high energy price in Europe. It includes a mandatory target for reducing electricity consumption during peak hours, a ceiling price on the excess income generated by nuclear and renewable energy technologies, a windfall tax on companies that have benefited from high oil and gas prices, a state aid programme to inject additional liquidity into struggling energy companies and a price cap on imports of Russian pipeline gas. The measures will be discussed with EU countries at an emergency meeting, with the exact targets yet to be decided.
Earlier in September 2022, the Russian energy group Gazprom stopped supplying gas to Europe via the Nord Stream 1 pipeline for an indefinite period of time. In July 2022, the EU’s energy ministers, gathered under the Council of the EU, approved an emergency plan for all EU member states to reduce gas use by 15% from August 2022 to March 2023, in anticipation of possible reductions in natural gas supply from Russia. The decision is non-binding and remains voluntary, contrary to the European Commission’s original proposal.