Lithuania voiced strong opposition to proposals that would cap the incomes of low-cost electricity producers, a position articulated by the Republic’s Energy Minister, Dainius Kreivis, during a Brussels briefing that was broadcast on the European Commission’s platform. The message was clear: imposing revenue caps on producers with minimal production costs risks destabilizing the European Union electricity market and could disrupt the country’s own internal market. This stance reflects a broader concern about how such caps might affect competition, investment signals, and price formation across member states.
Kreivis elaborated that the idea runs counter to the principle of level play in the electricity sector. He argued that subsidies flow unevenly across different companies, which would be unfair if governments attempted blanket restrictions on earnings. In Lithuania’s view, policy instruments should avoid privileging certain business models over others simply because of how subsidies are allocated, and they should preserve incentives for efficient production and market resilience. This critique emphasizes the importance of transparent, rules-based support mechanisms that do not distort competition or create loopholes for less productive players.
During the same week, Ursula von der Leyen, President of the European Commission, indicated on September 7 that the Commission was considering channeling windfalls and extra revenues earned by energy companies toward protecting vulnerable consumer groups. The intent, as described, is to ensure that households, small businesses, and those most exposed to price volatility see relief from elevated energy costs, while maintaining investment capacity for a reliable energy transition. This strategy aligns with a broader European appetite for social equity in energy pricing, even as market dynamics shift with higher wholesale prices and ongoing decarbonization efforts.
Separately, Polish Prime Minister Mateusz Morawiecki offered a critical perspective on the same package of proposals, expressing Warsaw’s opposition to a proposed tax on excess profits earned by energy companies within the European Union amid elevated electricity prices. He stressed that any new taxation framework in the energy sector must carefully account for the differences among member states’ energy systems, resource endowments, and climate targets. His caution underlines a key diplomatic challenge: harmonizing fiscal measures with national energy policies and ensuring that tax design does not undermine energy security or competitiveness in diverse national contexts. The discussion thus bridges concerns about windfall profits, tax policy, and the practical realities of meeting climate objectives across the bloc. [Source: European Commission statements and national government briefings]