EU executive unveils energy crisis plan amid Russia's war on Ukraine

The European Union's executive on Wednesday unveiled a range of proposals for member states to tackle an energy crisis caused by Russia's invasion of Ukraine.

EU executive chief Ursula von der Leyen speaks in the European Parliament in Strasbourg, France, on Wednesday.

Photo: EPA/CHRISTOPHE PETIT TESSON

The European Commission's proposals include imposing cuts in electricity use across the 27-nation bloc in an effort to protect households and businesses, news outlets reported.

The Commission's head, Ursula von der Leyen, told EU lawmakers that "making ends meet is becoming a source of anxiety for millions of businesses and households."

She proposed 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 Reuters news agency reported.

"In these times it is wrong to receive extraordinary record revenues and profits benefiting from war and on the back of our consumers," von der Leyen said in her annual State of the Union speech in the EU's parliament.

"In these times, profits must be shared and channelled to those who need it most," she added. "Our proposal will raise more than EUR 140 billion for member states to cushion the blow directly."

Millions of Europeans need support to pay their energy bills.

Some companies produce electricity at low cost and make great margins.⁰
We propose a cap on their revenues that will raise more than €140 billion.

And we will deeply reform our electricity market. pic.twitter.com/qDRzlh18nT

— Ursula von der Leyen (@vonderleyen) September 14, 2022

The European Commission in July called for a 15 percent cut in natural gas use by EU member states as part of efforts to deal with the energy crisis caused by Russia's war on Ukraine.

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Source: IAR, PAP, Reuters, ec.europa.eu