The leader of the European Comission Von der Leyen said, in her speech, that “beyond the immediate crisis, we must think about the future. The current electricity market model no longer does justice to consumers, who should enjoy the benefits of low-cost renewable energy.”
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European Energy Ministers will meet on September 30 to examine the emergency plan proposed by the European Commission, but some ideas presented already divide the bloc's countries due to their different energy situations.
Profit ceiling
The President of the Commission emphatically defended the adoption of a ceiling for the enormous profits recorded by low cost power generators. These companies, according to Von der Leyen, are making profits they never dreamed of.
According to the president of the European Commission, the measure will allow revenue of almost 140 billion euros, which can be used for the redistribution to vulnerable homes and businesses.
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For her, “in our social market economy, profits are good. But at this moment it is wrong to have extraordinary profits benefiting from war (…) At this moment, the benefits must be distributed and channeled to those who need it most”.
Ukraine support
The head of the European Commission had as a special guest the first lady of Ucrania, Olena Zelenska, and paid tribute to the country's resistance against the offensive initiated by Russia. She stated that the Europe's solidarity with Ukraine will remain “unshakable” and said that sanctions against Russians “are here to stay”.
“I stand here before you with the conviction that, thanks to our courage and our solidarity, [Russian President Vladimir] Putin will fail and Europe will win,” said Von der Leyen. During the speech, Von der Leyen announced that he will visit Kiev, the capital of Ukraine, this Wednesday (14), in which he intends to discuss with President Volodymyr Zelensky the continuity of European aid to Ukraine.
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Previously, at the request of European Energy Ministers, the Commission had already suggested other concrete ways to contain the crisis. Among them, the adoption of a cap on gas prices imported, despite divergences between the bloc's countries regarding the effectiveness and scope of the measure.
Other Commission proposals
Von der Leyen also announced:
- The creation of a public bank dedicated to hydrogen, with investments of almost 3 billion euros.
- An initiative to accumulate strategic reserves to avoid interruptions in the supply of raw materials essential to the European bloc's industries, in particular rare earths and lithium.
France 🇫🇷
During the meeting, the Prime Minister of France, Elisabeth Borne, announced that the French government will limit the foreseeable increase in natural gas and electricity prices to a maximum of 15% from 2023, with limits that will apply to domestic consumers and small businesses.
Denmark 🇩🇰
Denmark presented its own plan worth €6 billion to limit gas, electricity and heating bills to help families after a five-fold increase in energy prices.
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With AFP
