BRUSSELS – The European Union’s govt proposed on Wednesday capping the value of Russian gasoline imports, amongst a sequence of emergency measures designed to restrict customers’ power payments.
European Fee President Ursula von der Leyen outlined 5 proposals she mentioned might instantly have an effect on “astronomical” costs. Power ministers from the bloc’s 27 member states will focus on them on Friday.
1. PRICECAP ON RUSSIANGAS
Von der Leyen mentioned Russia was weaponising power markets to punish EU for Western sanctions imposed on Moscow over its invasion of Ukraine.
“We should reduce Russia’s revenues which Putin makes use of to finance this atrocious warfare in opposition to Ukraine,” she mentioned.
The EU govt is proposing a worth cap on Russian gasoline, with out specifying a determine.
Hours earlier, Russian President Vladimir Putin threatened to halt all provides if Europe took such a step.
The Fee can also be in search of to scale back gasoline costs from different suppliers, comparable to by coordinated EU negotiations.
2. REVENUECAPFORLOW-COSTPRODUCERS
The Fee will suggest a cap of 200 euros per megawatt hour on the value of electrical energy generated at low value from renewables and low carbon sources, in response to a draft doc seen by Reuters.
Von der Leyen mentioned additional revenues made might be channelled by EU international locations to assist struggling households and companies.
“It's now time for customers to profit from the low prices of low carbon power sources, like renewables,” she mentioned.
3. ‘SOLIDARITY CONTRIBUTION‘ FROMFOSSILSECTORFIRMS
The Fee has highlighted the terribly giant earnings by corporations within the oil, gasoline and coal sectors. EU international locations would accumulate a ‘solidarity contribution’ to assist susceptible customers or to speed up a shift to inexperienced power.
The funds might, for instance, assist energy-intensive sectors comparable to fertiliser manufacturing.
4. LIQUIDITYFORUTILITIES
Document-high costs are threatening power suppliers with attainable defaults. The volatility of gasoline costs has elevated threat as a complete for market contributors, resulting in calls for from banks or brokers for increased margins.
A number of the suppliers have sought state ensures to cowl the margin calls and the EU govt needs to permit EU international locations to supply them extra quickly.
The Fee plans to debate with regulators the opportunity of accepting a wider vary of property as collateral and with futures change operators the opportunity of “circuit breakers” to scale back intra-day worth volatility.
5. REDUCINGDEMAND
The Brussels-based Fee will suggest binding targets for EU international locations to scale back electrical energy use throughout peak hours.
In accordance with a Fee proposal, which has not been made public, EU international locations would wish to chop electrical energy use 10% monthly in contrast with the identical interval within the final 5 years, and by an additional 5% throughout peak worth durations.
One path throughout peak demand might be an public sale during which customers submit bids on the monetary compensation they would wish to chop consumption, this being funded by nationwide budgets.
EU members would additionally establish means to lower general electrical energy consumption.
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