The Strategist

EU to raise fees for electricity producers

09/14/2022 - 11:05

In order to offset a rapid rise in energy prices, the EU will propose to set higher levies on power providers who do not utilize gas, the Financial Times reports, citing a document from the European Commission.

As part of an emergency package of measures to address skyrocketing energy prices, Brussels "is set to impose higher-than-anticipated charges on non-gas power suppliers."

Additionally, the newspaper notes that the revenue cap for power producers who do not use gas would be set at €180 per MWh, which is lower than the €200 per MWh suggested in the previous draft, and less than half the going rate for electricity.

It should be highlighted that the European Commission's bill establishes requirements for member states to minimize their use of electricity during peak hours. The plan anticipates a 1.2 billion cubic meter drop in gas consumption over a four-month period as a result of this requirement.