How the European Commission wants to cushion the increase in energy prices

How the European Commission wants to cushion the increase in energy prices
How the European Commission wants to cushion the increase in energy prices
CopyAMP code

Scarce resources, rising prices: the threatening energy crisis is forcing the European Union and the Member States to amortize costs for consumers and businesses, without at the same time jeopardizing the incentives to save energy. In an analysis prepared by the German branch of the Centers for European Policy Network (CEP) think tank, the Commission’s proposal for an emergency regulation is called for swiftly. However, interventions on the electricity market should be limited to this winter.

“The energy crisis requires immediate and coordinated action at the European level,” says CEP’s legal expert on energy policies, Götz Reichert, who analyzed the Commission’s proposals together with CEP economists, Svenja Schwind and Jan S. Voßwinkel .

The European Union and the Member States face the challenge of reconciling the objectives of security of supply, economy and sustainability of energy. In this way, the advantages of the free electricity market structure in the Union should be preserved.

«Even if it will be impossible to reach pre-crisis price levels. However, the proposed measures help to mitigate the impact of high gas and electricity prices in the short term, ‘stresses Schwind. ‘If Member States introduce well thought-out measures to reduce electricity demand that focus on peaks in consumption, it becomes possible to reduce electricity prices as well.’

According to the Cep, the planned measures would provide both direct and indirect incentives to save electricity. The “signal” given by the price of the electricity market remains substantially intact. “High electricity prices, however, reveal supply shortages and provide incentives to reduce electricity consumption,” explains Voßwinkel.

Nor would the plans entail a structural change in the functioning of the basic mechanisms of the Union electricity market. “Consequently, the price cap (price cap), however, should only be introduced for a limited period of time, in order to mitigate the immediate challenges of securing energy supply and the effects of high energy prices in the coming winter, ”stresses Schwind.

CopyAMP code.

Furthermore, in its analysis, the Cep also addresses the aspect of taxation of extra-profits, without identifying particular criticalities, if appropriately inserted in an emergency context of a temporary nature.

Read on on the Cep website by consulting the report.

The article is in Italian

Tags: European Commission cushion increase energy prices

NEXT Hard to kill / On Italia 1, in the late evening, the film with Steven Seagal