The EU wants to counterbalance soaring prices

The EU proposes emergency intervention in the energy market to counteract soaring prices.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The EU wants to counterbalance the soaring prices. To this end, the European Commission proposes an emergency intervention in the energy market. The latter aims to reduce costs for consumers and redistribute record profits of energy companies.

Russia instrumentalizes energy resources and maintains a strong disparity between supply and demand, accentuating the energy crisis. The European institution had already advocated filling gas stocks and reducing demand as winter approaches.

EU fights price hikes

Faced with soaring prices, the EU is studying the possibility of reducing demand. This measure would have an impact on the price of electricity as well as a moderating effect on the market. In this sense, the commission proposes a reduction of at least 5% during peak hours.

Member states should identify 10% of the highest priced time slots and reduce demand in those slots. The EU also proposes to reduce overall energy consumption by at least 10% by March 31, 2023. Countries may choose appropriate methods to achieve this goal, which will result in compensation.

Reducing energy demand during peak periods would reduce gas consumption by 1.2 bcm this winter. Improving energy efficiency is one of the keys to achieving the Green Deal’s climate goals.

Capping the revenues of certain companies

Another measure to counterbalance soaring prices is the capping of revenues in certain energy sectors. Renewable, nuclear and lignite provide electricity at a lower cost than other energy sources.

The manufacturers in these sectors have achieved exceptional profits with relatively stable operating costs. At the same time, high-cost gas-fired power plants have fueled the price increase.

In its intervention plan, the EU plans to cap this inframarginal income at 180 €/MWh. Member state governments will collect revenues above this threshold.

A solidarity contribution for fossil fuels

The EU intervention plan also includes a solidarity contribution for fossil fuel producers. Member States will levy a contribution on profits for the year 2022 that are more than 20% higher than the average of the profits for the previous three years.

These revenues are redistributed to low-income households and companies hit hard by the energy crisis. This would allow the EU to limit the impact of this price surge.

EU countries would also be able to finance cross-border projects in line with the objectives of the RePowerEU program. The promotion of investments in renewable energy and energy efficiency will also be financed by these revenues.

The use of the Energy Prices Toolbox

The European Commission wants to pursue other avenues to reduce the pressure on households and industries. The EU could extend the scope of the Energy Prices Toolbox to support consumers as well as SMEs. These measures would allow regulated tariffs to be set below market prices for the first time.

Talks on the Net-Zero Framework, which seeks to regulate greenhouse gas pricing on marine fuels, have been postponed until 2026 following a majority vote initiated by Saudi Arabia.
Liberty Energy warns about the impact of import duties on drilling and power equipment, pointing to a potential obstacle to federal goals related to artificial intelligence and energy independence.
Enedis will progressively reorganise off-peak hour time slots from 1 November, impacting 14.5 million customers by 2027, under new rules set by the Energy Regulatory Commission.
A report highlights the financial burden of fossil imports during the energy crisis and points to electrification as key to European energy security.
Prime Minister Sébastien Lecornu announced a review of public funding for renewable energy, without changing national targets, to avoid rent-seeking effects and better regulate the use of public funds.
The 2025 edition of the Renewable Electricity System Observatory warns of the widening gap between French energy ambitions and industrial reality, requiring immediate acceleration of investments in solar, wind and associated infrastructure.
Kogi State Electricity Distribution Limited reported a ₦1.3bn ($882,011) loss due to power fraud, threatening its operational viability in Kogi State.
More than 40 developers will gather in Livingstone from 26 to 28 November to turn Southern Africa’s energy commitments into bankable and interconnected projects.
Citepa projections confirm a marked slowdown in France's climate trajectory, with emissions reductions well below targets set in the national low-carbon strategy.
The United States has threatened economic sanctions against International Maritime Organization members who approve a global carbon tax on international shipping emissions.
Global progress on electricity access slowed in 2024, with only 11 million new connections, despite targeted efforts in parts of Africa and Asia.
A parliamentary report questions the 2026 electricity pricing reform, warning of increased market exposure for households and a redistribution mechanism lacking clarity.
The US Senate has confirmed two new commissioners to the Federal Energy Regulatory Commission, creating a Republican majority that could reshape the regulatory approach to national energy infrastructure.
The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.