The EU studies limiting the price of energy for certain generators -document

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The European Commission’s forthcoming proposals to tackle rising energy prices should include a price cap for certain non-gas-fired electricity generators, according to a Commission document to the public. which Reuters had access to.

Interventions under consideration include a price cap for “inframarginal power generation technologies,” which have lower running costs than gas-fired plants, according to the document.

The purpose of the price cap would be to separate the commercial profitability of these generators from the current price of electricity, which has skyrocketed as a result of rising gas prices.

The price cap would provide financial resources that governments could spend on measures to curb retail energy prices for consumers.

According to the document, the EU proposals should also include measures to curb electricity demand.

EU countries have agreed to curb gas use this winter, but while some governments have also launched national measures to save electricity, EU countries have yet to join forces in this regard.

“This note presents a first package of measures to optimize the functioning of the European electricity markets and reduce the impact of gas prices on the prices paid by consumers,” the document says, adding that the suggested changes could be implemented quickly. for “immediate profit” during the current energy crisis.

The document described the ideas as a first assessment of options for EU initiatives to tackle energy prices and not as a formal policy proposal.

“The desired effect can only be achieved by a combination of these components,” he says, referring to the proposed combination of electricity demand reduction, price capping and measures to protect consumers from rising bills.

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