Reuters learned about the EC plan to introduce a "revenue limit" for power plants in Europe

The European Commission (EC) has developed a plan to introduce capped income for power plants that do not run on gas, including solar, geothermal, nuclear and some hydroelectric power plants. This is reported by REUTERS with reference to the draft document.

According to the agency, by limiting the excess profits of European electricity generating companies in the EC, they expect to support consumers who are faced with a sharp increase in electricity prices.

The EC will also require such companies to make a "solidarity contribution" to a special fund, from which countries can spend on measures to mitigate the effects of the energy crisis. The draft proposal could be published by Brussels as early as this week.

The rise in world electricity prices in Europe has been going on since the end of February, when the EU imposed sanctions against Moscow in response to the Russian special operation in Ukraine . This was followed by a decrease, and later a complete cessation of gas transportation through the Nord Stream, an increase in fossil fuel prices and record inflation. The situation in the European economy is complicated by severe drought in the central and southern parts of the region.

In some European countries, due to a sharp increase in gas prices and, as a result, electricity, production has decreased at factories, and many of them are on the verge of closing. In July, the EU member states agreed to cut gas consumption by 15% compared to the averages over the past five years from August 1 to March 31, 2023.

Moscow, in response to the restrictive measures of the West, transferred gas payments for unfriendly countries (the list of such states includes the entire EU) into rubles. After some countries, including Finland, the Netherlands, Poland, Denmark and Bulgaria, refused to pay in Russian currency, Gazprom stopped deliveries. The HEAD of the European Commission, Ursula von der Leyen, claimed at the end of July that a total of gas pumping was stopped in 12 EU countries.