The President of the European Commission, Ursula von der Leyen says the EU is set to propose measures to cap revenues from low-cost electricity generators and force fossil fuel firms to share the profits they make from soaring energy prices.
The EU commission President maintained that the bloc is also discussing energy price caps and working to establish a “more representative benchmark” price for gas than the Dutch Title Transfer Facility where gas prices have rocketed higher.
She added that the Commission has backed away from an initial plan to cap Russian gas prices, but EU countries are divided over whether broader price caps will help or harm Europe’s efforts to secure winter energy supplies.
European governments have ploughed hundreds of billions of euros into tax cuts, handouts and subsidies to try to contain an energy crisis, fueled by Russia’s invasion of Ukraine, that is driving up inflation, forcing industries to shut production and hiking bills ahead of winter.
Oil prices on the international market stabilised on Wednesday after dropping by more than $1 earlier in the session, following signs of bullish demand in an International Energy Agency (IEA) report.
U.S. West Texas Intermediate Crude recorded a price surge of 0.46% to hit $87.71 per barrel.
Bren Crude now sells at $93.64 per barrel registering an upward price margin of 1.47%.
Bonny Light’s trading value remains same as the previous session at $94.13 with a price drop of 1.66%.