EU plots grab on UK consumers money with new tax pledge on energy companies

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Governments across Europe have already ploughed hundreds of billions of euros into tax cuts, handouts and subsidies to tackle a crisis that is driving up inflation, forcing industries to shut production and hiking bills ahead of winter.

“In these times, profits must be shared and channelled to those who need it most,” European Commission President Ursula von der Leyen told the EU Parliament in Strasbourg, adding that the plans should raise more than 140 billion euros for member states to rechannel into helping businesses and retail consumers.

EU countries will have to negotiate the Commission’s proposals and agree on final laws.

The Commission proposals would skim off excess revenues from wind and solar farms and nuclear plants, by imposing a cap of €180 per megawatt hour (MWh) on the revenue they receive for generating electricity.

That would cap generators’ revenues at less than half of current market prices. Germany’s front-year electricity price was trading at just below €500/MWh on Wednesday.

The tax could also apply to EU companies that supply the UK as well as UK companies that supply the bloc, making more difficult for Ms Truss to negotiate contracts with generators which in turn would be forced to share their profits with the EU.

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