2022-09-15 16:25:00
EUROPEAN ENERGY CRISIS €140 BLN
ENERDATA - 15 Sep 2022 - The European Commission has released a series of emergency measures aimed at tackling soaring energy prices in the EU, notably due to the Russian invasion of Ukraine and strained relationships with Russia.
First, the Commission proposes to reduce electricity demand by 5% during selected peak price hours. In addition, Member States would have to reduce overall electricity demand by at least 10% until 31 March 2023. These reductions are expected to lead to a reduction of gas consumption by 1.2 bcm over winter 2022-2023.
The regional institution also seeks to impose a temporary revenue cap on inframarginal electricity producers, namely for renewables, nuclear and lignite, which are providing electricity to the grid at a cost below the price level set by the more expensive marginal producers. The The inframarginal revenues would be capped at €180/MWh. Revenues above the cap will be collected by Member State governments and used to help energy consumers reduce their bills. Member States trading electricity are encouraged to conclude bilateral agreements before 1 December 2022 to share part of the revenues collected.
Third, the Commission is planning a temporary tax on excess profits generated from activities in the oil, gas, coal and refinery sectors. The tax would be collected by Member States (on 2022 profits which are above a 20% increase on the average profits of the previous three years) and redirected to energy consumers, in particular vulnerable households and struggling companies.
The plan is expected to raise €140bn, including €117bn from the temporary revenue cap on inframarginal electricity producers and €25bn from the temporary solidarity contribution based on taxable surplus profits made in the fiscal year 2022 on energy undertakings in the oil, gas, coal and refinery sectors. The proposals require a qualified majority vote in the Council to be approved. The electricity emergency tool should apply no later than 1 December 2022 and until 31 March 2023. The solidarity contributions of the fossil sector will be implemented for one year after entering into force.
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Earlier:
2022, September, 14, 13:10:00
EUROPEAN GAS PRICES UP: $140 BLN
Benchmark futures rose as much as 6.9%, a day after closing 4.2% higher. Authorities are designing measures designed to rein in an unprecedented energy crisis that has fueled inflation, hurt industry and left nations on the brink of a recession.
2022, September, 14, 13:05:00
EUROPEAN ELECTRICITY PRICES RECORDS
So far, in 2022, spot electricity prices are five to ten times higher than in previous years. On August 22, the daily spot market price for Germany exceeded 600 EUR/MWh, 15 times the average of the 2010s.
2022, September, 6, 13:50:00
EUROPEAN ENERGY INFLATION
Benchmark energy futures fell after jumping on Monday, with Dutch front-month gas losing as much as 13% and German year-ahead power falling 11%.
2022, September, 5, 14:35:00
EUROPEAN ENERGY CATASTROPHE
Gas prices surged more than 35% on Monday as traders reacted to Russia’s decision to keep its main gas pipeline shut indefinitely.
2022, September, 5, 14:25:00
EUROPEAN COLD WINTER
That should help to make future decision making easier. But it is not going to help keep us warm this winter or indeed even in winter 2024.
2022, September, 1, 14:20:00
EUROPEAN RENEWABLE SHUTDOWN
Germany, which has the European Union’s biggest economy, and other countries intend restarting mothballed coal-fired power plants and extending the life of their nuclear power plants to reduce their reliance on Russian gas and coal following its invasion of Ukraine.
2022, September, 1, 14:15:00
EUROPEAN ENERGY MARKET GAP
The EU’s energy agency, Acer, has warned against tearing up the market structure. In a report in April, it said that the EU’s wholesale electricity markets work well under normal conditions, ensuring secure electricity supply.
