The European electricity producers are to cede all profits of more than 180 euros per megawatt hour to the state.

According to information from the FAZ, the European Commission will propose this on Wednesday in its law on the energy crisis.

This should affect all producers who generate electricity from renewable sources, nuclear power or lignite.

You are currently making very high profits because the electricity price is always based on the most expensive energy source used and gas is currently extremely expensive.

The Commission's proposal should not interfere with market pricing.

Henrik Kafsack

Business correspondent in Brussels.

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The income of the electricity companies concerned would then be capped at 180 euros.

They would have to give up the difference to the market price, which is currently fluctuating around 400 euros per megawatt hour.

This should apply to all transactions - regardless of whether the electricity is traded on the spot market or bilaterally.

The revenue limit is thus even lower than originally considered by the Commission.

In older drafts of the law, there was still talk of 200 euros.

"Unexpected Profits"

In addition to the electricity companies, the EU Commission also wants to ask the gas, oil and fuel companies to pay, which are also currently making a lot of money because of the Ukraine war.

They should give up 33 percent of their “excess profits” this year, as the FAZ reported first on Monday evening.

According to the Commission, the EU member states should use the money from both levies to support needy households and companies.

States should also be able to use it to reduce power consumption or make their energy supply less dependent on Russia.

Commission President Ursula von der Leyen wants to officially present the law on Wednesday as part of her "State of the EU Address".

It then has to be adopted by the member states with a qualified majority.

The Czech EU Council Presidency has already announced that it will press ahead with the consultations and, if possible, conclude them this month.

With the Federal Government, the Commission is thus opening the door to at least one view of the electricity market.

She has announced a similar approach to siphoning off “unexpected profits” from power companies.