Options for dealing with Europe’s energy price crisis

On September 30th 2022, EU Member States agreed a Regulation “on an emergency intervention to address high electricity prices” that obliges Member States to adopt specific measures regarding:
(i) electricity demand reduction,
(ii) a mandatory cap on market revenues of infra-marginal generators(aimed at capturing ‘windfall’ revenues of generators such as renewable electricity/nuclear, which benefit from high electricity prices but do nothave to pay the underlying high gas costs), and
(iii) a profit claw-back on oil and gas companies


Christopher Jones