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EU energy ministers have taken a package of measures to ease the energy crisis, including a windfall tax on the profits of fossil fuel companies, but have been unable to reach a deal to cap gas prices.
With energy prices soaring across Europe since Russia’s invasion of Ukraine, EU member states have struck a deal on the European Commission’s proposal that the bloc’s executive body says could help raise $140bn (£125bn) to help victims of the crisis. Individuals and businesses hit by the pandemic. crunch.
These include taxes on excess profits of companies that produce or refine oil, gas and coal.
The text should be adopted next week and enter into force soon.
Riina Sikkut, Estonia’s Minister of Economic Affairs and Infrastructure, said: “The most promising measure to really reduce average prices remains the reduction of peak consumption.”
She stressed that any hardships this winter are nothing compared to the price the Ukrainians are paying, adding: “We cannot forget that we are at war. The Ukrainians are paying the price with their lives, so for the time being we may be in Food stores pay higher bills or prices.”
The measures won’t have a direct impact on gas prices that have been frantic as Russia cuts supplies.
“We must not stop there, we are in an energy war with Russia, winter is coming. We need to act now. Now means now. It’s not a week, and it’s definitely not a month.”
A 15-member group is urging the European Commission to put a cap on wholesale gas prices as soon as possible to help households and businesses struggling to make ends meet.
“A growing number of member states are demanding price caps from the outset, a measure that helps each member reduce inflationary pressures, manage expectations and provide a framework in the event of potential supply disruptions, as well as limit Additional profits for the industry,” they said.
The proposal has yet to gain unanimous support, with Germany in particular opposed.
“We are negotiating with reliable pipeline gas suppliers. If this does not bring results, then a price cap is possible,” said EU Energy Commissioner Kadri Simson.
“Russia is not a reliable partner. In fact, it is the source of the problem. I strongly believe we need to put a price cap on all Russian gas imports so that they can still attract them to Europe.”
Russian gas supplies to the EU fell by 37% between January and August, according to European Commission data.
Meanwhile, inflation in euro-using European countries has breached double digits as energy prices soar
Eurostat, the European Union’s statistical agency, reported that consumer prices in the 19 euro zone countries hit a record 10 percent in September, up from 9.1 percent in August. Just a year ago, the figure was as low as 3.4%.
The price increase is at its highest level since the euro started keeping records in 1997.
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