EU ministers agree on measures to save energy and redistribute profits

Energy crisis EU energy ministers on Friday adopted a set of plans to deal with high energy prices. The EU is likely to take further measures later.

Climate and Energy Minister Rob Jetten (D66) talks with his Polish and Swedish counterparts ahead of Friday's meeting.

During peak hours, the energy consumption of EU member states must be reduced, there will be a ceiling on revenues from different types of energy and fossil companies must pay more profit taxes. These are the measures European energy ministers agreed on Friday to deal with the effects of soaring energy prices. The measures are expected to take effect from early October.

Energy consumption in the EU must be mandatorily reduced by 5 percent during peak hours from December to March. Member states can decide for themselves how they want to achieve these savings. The turnover ceiling for energy suppliers will be 180 euros per megawatt hour and will apply to so-called inframarginal energy variants; where the income from sales rises along with energy prices, but the cost of generating it does not. Examples include wind and nuclear power and lignite.

Fossil companies that saw their profits grow by more than 20 percent compared to the previous three years must also make a solidarity contribution. Exactly how high that contribution will be is not clear. The proceeds will go to households and businesses that suffer precisely from price increases.

EU ministers said after the meeting that this is only the beginning of taking further action against the effects of high energy prices. Euronews quotes French Energy Transition Minister Agnès Pannier-Runacher: We will have to go much faster and further, and come up with more proposals. An EU-wide price cap for energy is already on the table.