EU ponders price cap on Russian gas

On Wednesday, EU’s Ursula von der Leyen proposed that the bloc cap the price of Russian-imported gas, among other measures, as the member states are forced to deal with a worsening energy crisis while seeking to punish Moscow for invading Ukraine.

Facing a cut-off of Russian oil and natural gas as colder weather is looming, the EU also intends to flatten the curve of electricity usage during peak hours with mandatory usage targets; channel profits from low-cost energy sources and impose a tax on fossil fuel companies profits so they can support vulnerable households and vulnerable communities, and set up a temporary aid program to provide funds for new renewable-energy companies.

According to a draft of the proposal, EU officials intend to tax the unexpected profits” from low-cost energy sources if prices rise above about $200 per megawatt hour. Germany, which serves as the EU benchmark, had prices at $443 on Wednesday.