Towards a mandatory reduction in electricity consumption. Countries will choose time periods

Gas Expensive InvoicesHere is the future scenario. The winter of Europe increasingly embroiled in the war in Ukraine will also be a mandatory winter in electricity consumption, at least during peak hours. Brussels is preparing to launch the first part of the energy package, first of all laying down electricity demand, as well as taxing additional profits for multinational energy companies and the solidarity contribution from companies that process fossil fuels. The big absentee in the package that the Commission will discuss in Strasbourg on Tuesday, except for twists and turns, will be the price cap. The scale lies in limbo. On the other hand, with Moscow turning off the taps, it appears outdated. On the other hand, the general price ceiling for gas imported from the European Union does not meet the necessary consensus.

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European Union bills

For Ursula von der Leyen, this week will be decisive. The date set in red is on Wednesday, when the EU chief executive will deliver a State of the Union address at the plenary session of the European Parliament. The speech is highly anticipated, as it will also be the first occasion on which the Commission will present its energy proposals. The formal adoption of the package will in fact take place 24 hours after the meeting of the commission of commissioners in Strasbourg on Tuesday. In addition to the price cap, it should also leave aside the liquidity injection measures for companies operating in the energy market, which need fine-tuning to coordinate with the European state aid plan. Reducing consumption will be mandatory in the objective but not in the figure. The EU will set a monthly reduction in consumption – which should be around 10% but the percentage will be up for debate until the end – which every country must respect. The comparison will be made with respect to the same reference month and based on the 5-year average consumption prior to November 1, 2022. But it is up to national governments to decide at what time to start the cut. The draft proposal states that “the mandatory reduction… “must turn“ Who cut was made In 3-4 hours per working day on average, which usually corresponds to peak hours of consumption. This scope – continues – may also include “generation of electricity from renewable sources”. The proposal foresees that when selecting these hours, Member States have a “margin of appreciation”. Discretion that also extends to consumption reduction application areas. But with the package – which will follow the procedure under Article 122 of the treaties, which does not require unanimity – for European citizens, using two home appliances at the same time at certain hours of the day may actually be impossible.

Countries will choose time periods

The so-called “unexpected profit tax” (extra profit tax) as a hinge will have a mandatory limit on the revenues of operators who produce energy from renewable, nuclear and lignite, i.e. other than gas. The cap will be applied to revenue per megawatt-hour and will be the subject of discussion until the end, even if the trend in recent days is to fix it around 200 euros. The draft said that surplus revenue from the implementation of the cap should be “passed on to citizens and companies” who are “exposed to higher electricity prices.” And the actual price ceiling? He will most likely be the stone guest for the informal European summit in Prague in early October. The general ceiling for gas imports, backed by About fifteen Italian countries are in the lead, facing resistance not only in the EU (from Germany and the Netherlands, first of all) but also from Brussels’ energy partners.Norwegian Prime Minister Jonas Gahr Store, in a telephone conversation with von der Leyen, expressed His “doubts” about the measure, which may also face opposition from Algeria and Azerbaijan.Now Europe can no longer do without its gas.