President of the European Commission, Ursula von der Leyen, spoke this week about proposed measures aimed at limiting sudden windfalls for cross-border electricity producers. The plan targets generators of power from renewables, as well as those using nuclear and fossil fuels, and is projected to bring substantial fiscal relief to EU member states. The intent is to channel this additional revenue toward stabilizing energy prices for consumers and supporting vulnerable households during volatile markets.
A core element of the package is a mechanism designed to capture a portion of excessive profits earned by low-cost electricity producers. The Commission argues that these profits, often generated during periods of high wholesale prices, should be redirected to cushion households and to fund targeted energy subsidies. The proposal emphasizes that the fossil fuel sector also bears a share of responsibility, with a call for equitable contribution in the face of extraordinary market conditions.
Additionally, the Commission outlined a plan to create a European Hydrogen Bank, intended to guarantee the purchase and deployment of hydrogen as a key decarbonization tool. The plan anticipates mobilizing an investment of around 3,000 million euros to accelerate hydrogen supply chains, storage, and market readiness across member states. This fund would support broad-based usage of clean hydrogen in industry, transport, and power generation, helping Europe advance its energy transition with greater price stability.
In the State of the Union address, the President highlighted that profits from low-cost electricity generation have surged in recent years. The proposal seeks to ensure that these windfalls are shared more broadly, rather than accruing entirely to a few market players. The Commission notes that large oil, gas, and coal firms have also benefited significantly and argues that a fair tax or contribution should apply to these profits as part of an inclusive energy policy. This approach is framed as a step toward protecting consumers from price spikes while supporting investment in sustainable energy and social resilience.
Von der Leyen: “Sanctions on Russia Will Remain”
The Commission president underscored in her remarks that producers of electricity using marginal technologies, including renewables and nuclear power, have enjoyed profitability in conditions that may not reflect society’s broader needs. The evolving framework seeks to curb such dynamics and align profits with public interests, ensuring that gains are generally channeled toward social and energy solutions rather than concentrated in a few corporate coffers.
The executive chair of the Community Steering Committee added that major oil, gas, and coal companies have accrued substantial profits. The message was clear: these entities should contribute their fair share to the energy system during times of crisis, in order to support consumers and fund the transition to cleaner energy sources. The emphasis remains on balancing market returns with social responsibility, especially when geopolitical tensions affect energy security and household costs.
Thus, Von der Leyen stated that in a period marked by conflict and price volatility, exploiting the war to obtain record profits at the expense of consumers is unacceptable. The proposed measures aim to distribute the additional income more broadly, targeting the most vulnerable households and ensuring that the benefits of clean energy and price stabilization reach those most in need. The intended effect is to cap the price at which renewable and nuclear electricity can be sold on the wholesale market, using the resulting revenue to support social programs and relieve the burden on families facing sharp energy bills.