EU Countries Turn to Gas Price Cap After Approving Energy Windfall Levies

EU Countries Turn to Gas Price Cap , After Approving Energy Windfall Levies.

CNBC reports that on Sept.

30, ministers from European Union member countries met in Brussels.

CNBC reports that on Sept.

30, ministers from European Union member countries met in Brussels.

They approved a package to fight the energy price surge that has been plaguing the EU caused by Russia's war with Ukraine.

They approved a package to fight the energy price surge that has been plaguing the EU caused by Russia's war with Ukraine.

The measures that were approved include levies on the surplus profits made by fossil fuel companies and low-cost power producers as a result of soaring electricity costs.

A 5% decrease in electricity use amid peak price periods was also approved.

Fifteen of the EU member countries think the next step should be to implement a broad gas price cap to contain inflation.

Belgium, Greece, Poland and Italy disagree with the Commission's claim that such a move would require "significant financial resources" to purchase emergency gas if market prices exceed the cap.

Tinne Van der Straeten, Belgian energy minister, argues that only $1.96 billion would be needed, which is a fraction of what the EU suspects it will profit from the new levies.

Tinne Van der Straeten, Belgian energy minister, argues that only $1.96 billion would be needed, which is a fraction of what the EU suspects it will profit from the new levies.

Germany, Austria and the Netherlands disagree, arguing that broad price caps could make it difficult for countries to buy gas if they can't keep up with the competitive prices of global markets.

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Brussels hopes the new EU-wide measures will help to even the playing field for poorer countries within the union who haven't been able to help struggling businesses and consumers as much as the richer countries