Finance
EU will propose windfall levies on energy firms, von der Leyen says
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BRUSSELS (Reuters) – The European Union will 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, European Commission President Ursula von der Leyen said on Wednesday.
BRUSSELS (Reuters) – The European Union will 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, European Commission President Ursula von der Leyen said on Wednesday.
“In these times it is wrong to receive extraordinary record revenues and profits benefitting from war and on the back of our consumers. In these times, profits must be shared and channelled to those who need it most,” von der Leyen said in a speech to the European Parliament in Strasbourg.
Von der Leyen said the bloc was also discussing energy price caps, and working to establish a “more representative benchmark” price for gas than the Dutch Title Transfer Facility (TTF).
(Reporting by Kate Abnett, Marine Strauss)
A windfall levy is a tax imposed on companies that have unexpectedly high profits, particularly during times of economic distress, to redistribute wealth and support affected consumers.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, upholding EU treaties, and managing the day-to-day operations of the EU.
Fossil fuels are natural substances formed from the remains of ancient plants and animals, primarily consisting of coal, oil, and natural gas, which are used as energy sources.
A benchmark price is a standard price used as a reference point for pricing other goods or services, often used in financial markets to assess performance.
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