EU to raise $140 billion from energy windfall revenues to help residents pay gas and electricity bills | The Countdown Nigeria
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EU to raise $140 billion from energy windfall revenues to help residents pay gas and electricity bills

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Reports has stated that the European Union (EU) has made plans to raise $140 billion (€140 billion) through the its Windfall revenues of some of the energy companies to help residents and businesses to pay there electricity and gas bills.

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According Cnn Business News , On Wednesday, the European Commission proposed capping the profits of renewable and nuclear electricity producers, and taxing the windfall earnings of oil and gas companies.

Europe sanctioned Russian oil and coal exports after the invasion, prompting Moscow to slash supplies of gas in return.

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EU Commission President Ursula von der Leyen said on Wednesday that the bloc would conduct a “deep and comprehensive reform” to decouple the cost of gas from the price of electricity.

“These companies are making revenues they never accounted for, they never even dreamt of,” she told EU lawmakers in a speech in Strasbourg, France.

“It is wrong to receive extraordinary record profits benefiting from war and on the back of consumers,” she added.

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The Commission’s proposals still need to be debated and adopted by EU member states.

The bloc could introduce a cap of €180 ($180) per megawatt hour on the electricity produced by renewable energy firms, the Commission said in a statement.

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 Europe’s benchmark wholesale gas price is currently €212 ($212) per megawatt hour.

Natural gas and oil prices started rising last year as countries reopened from their pandemic lockdowns, sparking a surge in demand.

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But Russia’s invasion of Ukraine in late February and the resulting energy differences between Europe and Moscow sent them through the roof. 

Oil has since fallen back as a global economic slowdown leads to reduced demand, but natural gas prices remain higher than their March peak.

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The EU proposal is part of a package of measures to help the region weather the crisis in energy sectors this winter, when temperatures drop and demand normally spikes.

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The package includes a “crisis contribution” from coals, gas and oil producers, who have reaped similarly huge profits, and mandatory targets for countries to reduce their energu consumption during peak hours.

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The Commission said in its statement that EU member states should levy an extra tax on any profits that exceed the average earnings for the past three years by more than 20%. It did not specify the rate of tax

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