EU seeks to cap electricity producer price at EUR 200 per MWh

The European Commission recommends that national governments impose a levy on revenues generated by non-gas electricity producers when market prices exceed EUR 200 (RON 1,000) per MWh, according to the Commission's draft recommendations that expect endorsement from the Member States on September 9.

Excess revenues would be redistributed to help companies and households, Economica.net reported.

European Commission president Ursula von der Leyen said on Wednesday, September 7, that low-carbon energy producers are making "enormous revenues, revenues they never calculated, revenues they never dreamt of and revenues they cannot invest as fast."

Such a cap would mimic "the market outcomes that could be expected where global supply chains functioning normally and not subject to the weaponisation of energy through gas supply disruptions," the commission document said.

The member states are entitled to maintain or introduce measures that further limit producers' incomes, provided that these measures are compatible with EU law, the draft also shows.

The document also suggests a mandatory target of reducing electricity consumption by 5 percent during peak pricing hours.

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