Brussels, 19 September 2022

On the 14th of September, in the context of record levels in gas and electricity prices following the Russian invasion of Ukraine, the Commission has proposed a Council Regulation  on an emergency intervention to address high energy prices.

The Commission expects energy prices to remain high and explains this by the deliberate attempt by Russia to use energy as a political weapon, while fearing the spill over effects high gas prices can have on the prices of energy and overall inflation.

The EU Commission therefore proposes that Member States must cut peak electricity consumption by 5%, while aiming to reduce total electricity consumption by 10% by the end of 2023.

At the same time, the proposal contains a solidarity contribution of the fossil fuel sector based on surplus profits made in the fiscal year 2022. Member States should channel these surplus revenues collected to final electricity consumers, ie both citizens and private companies, who are exposed to high prices.

These revenues can then be used to provide income support, rebates, investments in renewables, energy efficiency or decarbonisation technologies. 

According to the Commission, the electricity emergency tool should apply no later than 1 December 2022 and until 31 March 2023, while aiming to carry out a review of the tool by 28 February 2023.

Source: European Commission