EUROPE obtained a new draft version of the European Commission’s emergency measures to combat rising energy prices on Tuesday 13 September, on the eve of their official presentation.
Unlike an earlier document detailed in our articles (see EUROPE 13019/1), this document includes quantified targets.
It states that the European revenue cap for inframarginal power generators, i.e. technologies that produce at a cost below the wholesale market price, would be set at 180 euros/MWh, compared to 200 euros/MWh in a previous version (see EUROPE 13016/1).
The “temporary solidarity contribution” would be calculated on the basis of the taxable profits of fossil fuel companies in the tax year 2022 exceeding 20% of the average taxable profits of the three tax years beginning on or after 1 January 2019.
The rate applicable for the calculation of the temporary solidarity contribution should be at least 33% of this base.
Regarding the electricity demand reduction targets (the third measure foreseen by the Commission), the draft indicates that the indicative target would be set at -10% of the total monthly gross electricity consumption in each Member State.
The second target would be a mandatory 5% reduction in electricity consumption during peak hours, covering at least 10% of the hours in each month when prices are expected to be highest.
See the draft Regulation: https://aeur.eu/f/321 (Original version in French by Damien Genicot)