Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

EU targets 5% peak electricity demand cut to tackle soaring prices and energy crisis

EU targets 5% peak electricity demand cut to tackle soaring prices and energy crisis

European Commission president Ursula von der Leyen today outlined measures to tackle record-high inflation driven by surging energy costs, which have inflicted limits on industry and sky-high bills on households.

European Union countries will be forced to cut electricity use by 5% during peak hours under proposals to stave off a looming winter energy crisis.

The draft EU plan seen by Politico and Reuters - which also includes windfall taxes on energy firms - is designed to temper soaring energy costs that are also stoking inflation, and ensure member states have enough fuel to see it through the colder months.

The 27-nation group has accused Moscow of weaponising gas by slashing supplies in response to sanctions the bloc - along with allies - imposed at the outbreak of the war in Ukraine.

"Never before has this Parliament debated the State of our Union with war raging on European soil," European Commission president Ursula von der Leyen said on Wednesday.

EU countries have already agreed to cut gas use by 15%, and gas storage is now 84% full, exceeding the EU's pre-winter filling target.

But analysts say Europe will still need to slash gas use over winter to avoid storage facilities running dry.

Among the package of measures to ease the impact of soaring inflation is a windfall levy to claw back what the European Commission described as "unexpected profits" from Europe's non-gas fuelled power plants, linked to soaring oil and gas prices stoked by Russia's slashing of supplies.

"These companies are making revenues they never accounted for, they never even dreamt of," Ms von der Leyen told the European Parliament in Strasbourg.

It is "wrong to receive extraordinary record revenues and profits benefiting from war and on the back of our consumers," she added.

"Profits must be shared and channelled to those who need it most."

Chatham House's deputy environment director Antony Froggatt said the targets and taxes are "significant departures" from UK policy.

He said there was "little mention of the importance of demand side measures" in Prime Minister Liz Truss's speech last week, which promised £100bn-plus emergency bailout for households to help with energy bills. Ms Truss opposes a fresh windfall tax on energy producers.

Brussels said its windfall tax plans would raise €140bn on energy companies' profits to cushion the blow of record high energy prices this winter. The cash is likely to attract "significant support" for the policy from member states, Mr Froggatt told Sky News.

Oil, gas, coal and refining firms would be required to make a "solidarity contribution" of 33% of their taxable surplus profits from fiscal year 2022, according to Reuters.

Wind and solar farms and nuclear plants would face a cap of 180 euros (£156) per megawatt hour (MWh) on the revenue they receive for generating electricity, with governments recouping any excess cash and recycling it to support consumers.

The draft could still change before publication as governments thrash out the details, possibly approving them at a meeting of energy ministers on 30 September.

Speaking at the end of the continent's hottest summer in history, Ms von der Leyen stressed how "the climate crisis is heavily weighing on our bills," with heatwaves boosting electricity demand and shutting down hydro power and nuclear plants.

Though she did not make any major climate policy announcements, the EC president did pledge €3 billion (£2.6 bn) for a new European Hydrogen Bank to help "[build] the future market for hydrogen".

She called for better adaptation in the face of increasing droughts and fires, promising to double firefighting capacity over the next year.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×