EU Weighs Price Cap on Power From Renewables, Nuclear

EU Weighs Price Cap on Power From Renewables, Nuclear

13 Sep    Finance News, Physics

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(Bloomberg) — The European Union is considering capping the power-generation revenues of renewable and nuclear companies at 180 euros to 200 euros per megawatt hour as part of an emergency package, according to people familiar with the talks.

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The European Commission, which is due to unveil on Wednesday an unprecedented plan to step into energy markets, is also planning to propose a temporary levy on companies in oil, gas, coal and refinery industries of at least 33% of their extra profits, said the people, asking not to be identified commenting on private talks. The basis will be pre-tax profits of fiscal year 2022 that are more than 20% higher than the average of the three years starting in 2019.

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To reduce power demand, the EU’s executive arm is eyeing a target to cut overall consumption by 10% and a mandatory goal lowering demand during selected peak hours by 5%, the people said. The final numbers will need to be approved by EU commissioners who are meeting on Tuesday and then will require sign-off by national governments.

Deep divisions on how to design the emergency intervention package were on display at a meeting of ministers last week and some governments are likely to push for changes to Commission President Ursula von der Leyen’s plan.

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