Yesterday, Ursula Von der Leyen announced in the State of the Union address the details on measures to alleviate the electricity price crisis, which could raise up to 140 billion euros.

The European Commission proposes to establish a tax on the extraordinary profits of fossil fuel companies. The tax will be applied to profits obtained from the 2022 fiscal year that exceed 20% above the average of the last three fiscal years.

The executive also contemplates applying a temporary cap of €180/MWh to the revenues of inframarginal industries (renewables and nuclear). The price difference with the wholesale market must serve to help, among others, vulnerable families and electrointensive companies.

Regarding electricity demand, member states will have to reduce it by 10%, of which at least 5% must be during peak hours.

Finally, regulated prices below market can be established for the first time, and SMEs will be allowed to join.

EU energy ministers are expected to discuss the measures presented by the president at the end of the month and decide how to transpose them to each country.