“Profits earned during the war”
It should be delivered to those who need it.”
The European Commission (EU) is pushing for a plan to collect 140 billion euros (regarding 195 trillion won) from energy companies and use it to curb the surge in energy prices.
European Commission President Ursula von der Leyen said in a speech to the European Parliament on the 14th (local time) that “it is wrong to derive huge profits from consumers in the midst of war”. . The remarks are aimed at energy companies that have reaped huge profits as energy prices skyrocketed following Russia invaded Ukraine.
Chairman von der Leyen suggested a so-called ‘windwind tax’ and price restrictions as the main solutions, saying that more than 140 billion euros should be raised to solve the EU’s energy crisis. The plan is to raise funds by recovering excess profits earned by companies through a windfall tax due to rising energy prices.
Nuclear and renewable energy companies that do not use gas as their main energy source and benefit greatly from rising electricity prices are likely to set a profit ceiling of 180 euros per megawatt-hour (MWh) and recover excess profits. The EU will distribute €140 billion raised through this method to EU member states.
Von der Leyen explained that raising funds from energy companies was only a temporary measure. This means that the EU will ultimately have to come up with a stable energy supply while conserving energy. The EU plans to hold a meeting on the 30th of this month to discuss such measures.
Von der Leyen also said it was necessary to change the standard for European gas prices. The current benchmark is Dutch TTF gas futures. The reason was that the situation was changing in the direction of the EU to reduce the use of Russian natural gas supplied through gas pipelines and increase imports of liquefied natural gas (LNG). However, there is some skepticism in the market as to whether a price standard to replace the Dutch TTF gas futures is possible.
Von der Leyen also said that the introduction of a price ceiling for Russian natural gas is currently under discussion. There are differences of opinion among EU member states on whether to introduce a price cap.
Reporter Lee Go-woon [email protected]