Emergency intervention to deal with high energy prices

The EU recently published EU Regulation 1854/2022 introducing common measures to reduce electricity demand and to collect and redistribute surplus income from the energy sector to households and small and medium-sized enterprises.

A voluntary global reduction target of 10% of gross electricity consumption and a mandatory reduction target of 5% of electricity consumption at peak hours are established. Member States will identify 10% of peak hours between 1 December 2022 and 31 March 2023 during which they will reduce demand. Countries will be free to choose the appropriate measures to reduce consumption for both objectives in this period.

Likewise, a mandatory market revenue limit of 180 euros per MWh of electricity produced from wind, solar, geothermal, hydroelectric without reservoirs, biomass, waste, nuclear, lignite, crude oil derivatives is established and peat

The Regulation also establishes support for energy end customers through a temporary solidarity contribution from the earnings of companies active in the crude oil, natural gas, coal and refinery sectors.

The income from the solidarity contribution will be used to provide financial support to households and businesses and to mitigate the effects of high retail electricity prices.