EU looks to raise $140 billion with windfall swoop on energy firms

A top European Union official unveiled a plan on Wednesday to cap the revenue of electricity producers that are making extraordinary profits because of the effects of Russia's war in Ukraine and climate change, saying the proposal could raise $140 billion to help people hit by spiraling energy prices.
 

It's one of several proposals aimed at containing an energy crisis in Europe that could lead to rolling blackouts, shuttered factories and a deep recession this winter. Others include slashing energy use and reforming the electricity market, which all need approval by the 27 EU countries.

As the bloc supports Ukraine, Russia has reduced or cut off natural gas to 13 member nations, surging gas and electricity prices that are expected to go higher as demand peaks during the cold months.

Europe also has been hit by a drought that experts say is the worst in 500 years. Prices for natural gas — which is used to power industry, heat homes and generate electricity — are now 10 times higher in the EU than before COVID-19 took hold in 2020.

“Russia keeps actively manipulating our energy market,” European Commission President Ursula von der Leyen told EU lawmakers in Strasbourg, France. “So, this market is not functioning anymore.” Individual countries have passed subsidies, tax cuts and other relief for households and businesses as high energy prices drive record inflation. But with economies still recovering from the pandemic, money must be found outside of national budgets to provide more help to millions struggling to pay their electricity bills.

Germany mulls Unpier nationalisation
 

Uniper SE confirmed that Germany is considering raising its equity in the company to more than 50 per cent, while France’s power-grid operator it expects to issue alerts to reduce energy consumption several times this winter.