EU looks to curb energy firms' profits to rein in 'astronomic' prices

By Agnes Szucs

BRUSSELS (AA) – EU Commission chief Ursula von der Leyen on Wednesday unveiled a proposal to curb revenues of energy companies as part of a set of new measures to tackle “astronomic energy prices.”

Ahead of Friday’s emergency meeting of EU energy ministers, she announced a package of five key measures to rein in spiraling prices on the continent.

“We will propose a cap on revenues of companies producing electricity with low costs,” she said at a news conference, citing renewables as an example.

Von der Leyen explained that these companies make “unexpected revenues, which do not reflect their production costs.”

According to the European Commission’s plans, these “unexpected profits” should be channeled to consumers and used to support vulnerable households and businesses.

The EU executive body also suggests a “solidarity contribution” from fossil fuel companies that have made “massive profits” from soaring energy prices.

The contribution would finance aid for vulnerable households and the transition to renewable energy.

The EU will also insist on limiting the price of Russian gas to “cut Russia’s revenues which (President Vladimir) Putin uses to finance this atrocious war against Ukraine,” von der Leyen asserted.

In addition, the European Commission has also proposed a mandatory reduction of electricity use at peak hours and liquidity support for utility companies.

The proposal is yet to be adopted by EU countries.