Some more details of the EU Plan to save energy and reduce energy prices have emerged in the last 24 hours and here is a brief summary.
The European Executive proposes that the current “voluntary” energy savings of 15% (in the case of Spain 5%) should be substituted for an obligatory saving of at least 5% during peak hours.
Secondly, Brussels proposes a 33% tax on the “extraordinary benefits” of the energy sector (including petrol, gas, coal and refineries) as an “exceptional and temporary” measure.
A “solidarity contribution” of 20% will be applied on profits of 2022 which are superior to the average profts of the previous three years.
(In Spain the Congress is considering a tax of 1.2% on income, not profits, of the large energy companies, a proposal which has passed the first stage of approval, as reported in Nexonr yesterday).
The EU Commission also proposes to limit on the price per megawatt hour of 180 euros* on the wholesale market for low cost energy produced by green, nuclear and lignite which aims to minimize the high prices of energy.
With these measures the EU expects to collect 140 million euros which will be destined to alleviate the burden on homes and businesses exposed to the current high energy prices.
This packet of measures, which the EU Energy intend to approve on September 30, do not include a ceiling on the price of gas.
At the same time the EU are working on a long term reform of the energy market, which would remove the link between the price of gas and the price of electricity, and which is expected to be ready by the end of the year.
Editors Note
The reduction of energy consumption at peak times (in Spain between 8pm and midnight and possible for two hours in the morning) will require homes and businesses to cut consumption during these hours. There is also a proposal that using «high energy appliances» during thee hours may carry a penalty on the electricity bill. However, the EU has also muted that countries should be able to introduce their own measures to reduce energy consumption so we may have to wait until after these measures have been approved by EU Energy Ministers on September 30 and then for the Spanish Government to announce the domestic measures they will introduce.)
* this price per megawatt hour is for «wholesale electricity» and does not includes taxes and standing charges.
