Ursula von der Leyen wants to limit the income of electricity companies and “measures” for gas

Ursula van der Leyen has announced that she will propose Limit on income of all electricity companies.

He emphasized that there is nothing wrong with a company making a profit, but “Profiteering, war profiteering and profiteering off the backs of consumers is wrong in these turbulent times.“.

“Millions of Europeans need our support, which is why we are proposing a cap on the income of low-cost electricity producers. These companies are making unimaginable profits, don’t get me wrong. In our social market economy, profit is accepted and everyone is for profit. But in these tumultuous times it is wrong to make huge, huge profits, to profit from war, and to be on the backs of consumers.

At this time, the profits should be shared and invested in the needy and sent to those who need them. That is why our program includes hydrocarbon producers who must contribute to this crisis. Our program will mobilize more than €140 billion from Member States to tackle this difficult situation.”

Gas crisis: “We are preparing a package of measures”

Regarding the crisis caused by Russia in gas supplies, the head of the European Commission announced that he was preparing a “measures” to “reasonably reduce gas prices”.

“We’re talking about the temporary, emergency measures that we’re preparing, and I’m referring to the discussion about the gas price cap. Efforts should be made to reduce gas prices. On the one hand, we need to ensure security of supply, but on the other hand, we need to ensure that we are globally competitive. I am talking about security of supply, because gas must reach European territory.

On the other hand, however, if it is too expensive, it has negative effects on our global competitiveness. Therefore, together with the Member States, we are preparing a package of measures that take into account the specific nature of our relationship with gas suppliers, from an unreliable supplier like Russia to reliable friends like friends in Norway, for example. We have agreed with Prime Minister Store to form a high-level expert team so that teams can work towards this common goal. Let’s see how we can reasonably lower gas prices.” – said Ursula van der Leyen.

“Deep and Radical Reform of Electricity Market”

The head of the European Commission also announced that measures are being prepared for the electricity market to decouple from the price of gas.

“Another very important topic, the gas market, has changed dramatically, pipeline gas, we used to have an abundance of it, and the amount of liquefied natural gas is increasing.

But in the FTT, the definitions have not changed, so the Commission will prepare a more representative bench for electricity trading, which will reflect this change in the market that we have observed. At the same time, we are also well aware that energy companies face very serious liquidity problems in electricity futures markets. We will cooperate with regulators to ease the problem by changing collateral rules and taking steps to reduce intraday market volatility. And we will change the grant program in October to allow for state guarantees while maintaining a level playing field for all. It is a very complex situation, it is not simple, but these are only the first steps, because of course we have to solve urgent problems, but we also have to look to the future.

So my finding is that today’s electricity market, which operates on the basis of merit, is no longer appropriate and does not serve the consumer. Consumers should benefit from low-cost renewables. That should be our goal. So we have to decouple gas and electricity prices, and that’s why we’re going to do a deep and radical reform of the electricity market.”

“It’s a Power War”

Furthermore, Van der Leyen emphasized that Russia’s war in Ukraine is also about energy and economics.

“It is a war on energy, economy, is about autocracy fighting democracy against our future. If we see the necessary unity, Putin will fail and Ukraine and Europe will win“, emphasized the Chairman of the Election Commission.

In his view, “Russia’s financial sector is on the brink of death”, and”“Russian industry is fragmented.”.

“I want to be very clear: the sanctions remain. It is time to be firm and not make concessions. The same goes for our financial assistance to Ukraine. – said the President of the Commission in a speech on the State of the European Union.

Every year, in September, the President of the European Commission delivers a State of the Union address to the European Parliament, in which he highlights the past year’s achievements and sets out priorities for the coming year.

It also presents the Commission’s solutions to the most pressing challenges facing the EU and ideas for shaping the EU’s future.

Summary of statements by European Commission President Ursula van der Leyen – Live Update:

– We will be tempted by those who seek to take advantage of any division among us. This is not just a war started by Russia, it is a war on energy, a war on our future.

– If we have the courage we need, Putin will fail, Ukraine and the Union will win.

– Today, courage is a name, this is Ukraine. It has a face, and that face is the men and women resisting the invasion of Ukraine.

– My dear Olena Zelenska, it took great courage to stand up to Putin’s cruelty.

– Russia’s financial sector is on the brink of death. Russian industry is fragmented. It is the Kremlin that has driven this economy to ruin.

– I want to be very clear, there are obstacles, we will not make concessions, let this be very clear.

– Reconstruction of Ukraine will require massive resources.

– Dear Olena, we will work with you to restore the schools.

– I would like to expand this trade which is beneficial to both sides, we have eliminated tariffs and we will ensure that Ukraine enters the roaming zone.

– We should have asked those who knew Putin, the Russian journalists who exposed the crimes. We should have listened to the voices raised in the EU, Central and Eastern Europe.

– We have to rely on suppliers like the US or Algeria. We see that Russia is actively manipulating the energy market and wants to burn gas.

– Drought shut down nuclear power plants and cost increased 10 times.

– Millions of Europeans need our support. That is why we are proposing a ceiling on corporate profits.

– Our proposal requires hydrocarbon producers to contribute. These are temporary measures.

– We are preparing a package of measures to control gas prices. Let’s see how we can reduce gas prices reasonably.

– We are also preparing measures for the power sector. This is a very complicated situation, but these are only the first steps. Today’s electricity market is no longer pro-consumer.

– We will carry out a deep and radical reform of the electricity market.

– In the 1950s, the world faced another hydrocarbon crisis. They were missteps not just for the climate, but for our finances, and we’re pulling the strings today. Few understood that the problem was hydrocarbons. Denmark has invested heavily in wind energy. This is the way to go.

– Hydrogen will change the situation in Europe. We want to produce 10 million renewable hydrogens. Let’s create a new European hydrogen bank. This will help guarantee the purchase of hydrogen. It can invest up to 3 billion euros. This is our Green Deal for Europe.

– I would like to announce that by 2023 we will double our firefighting capacity and purchase more emergency aircraft.

– After an unprecedented pandemic, we went from no vaccine to 4 billion doses. We have been in the deepest recession since World War II until today.

– Unemployment rate is 6%, which is very good, but at the same time jobs are unfilled. An important step is qualifications, they must be fast. I propose that 2023 will be the year of formation.

– We will be releasing a briefing on Protecting Democracy, which will shed light on the misinformation surrounding Covid.

– On the continent of Europe, we need to eradicate corruption in our backyard. Next year, the Commission will propose measures to improve the Anti-Corruption Act. Let’s tighten the restrictions.