Prague, Sept. 9, (dpa/GNA) - European Union finance ministers will on Friday scrutinize different measures taken by the bloc’s member states to reduce skyrocketing electricity prices and tackle record inflation.
The meeting in Prague comes a day after the European Central Bank’s decision to raise the key interest rate by 75 basis points to 1.25%, after inflation hit 9.1% in the euro area in August 2022.
Energy ministers will meanwhile meet in Brussels to discuss a revenue cap for electricity companies profiting disproportionately from rising costs.
The European Commission on Wednesday presented proposals for EU countries to start skimming off excess revenues to make money available to households and businesses in need as well as expanding domestic power generation.
The price of electricity in the EU is determined by the most expensive energy source needed for its production, meaning the rising electricity prices are driven by power plants that burn expensive gas to generate electricity.
Other proposals discussed by energy ministers include a so-called solidarity contribution from fossil fuel companies.
A mandatory target to reduce electricity consumption during periods of high demand and a price cap for gas imported from Russia are under consideration too.
If energy ministers agree on how to tackle rising electricity prices on a European level, the European Commission could put forward a legislative proposal as early as next week.
EU finance minister will also discuss financial support for Ukraine on Friday, before concluding their meeting on Saturday with a discussion on the bloc’s future fiscal rules.
GNA