|Author (Corporate)||Council of the European Union|
|Series Title||Official Journal of the European Union|
|Series Details||L 261I, Pages 1-21|
|Content Type||Blog & Commentary, Legislation, News, Policy-making|
Regulation (EU) 2022/1854 - formally adopted by the Council of the European Union on 6 October 2022 - setting out an emergency intervention in the European Union's energy markets to tackle sharp price rises.
Gas and electricity prices reached record levels in 2022, in the aftermath of COVID-19 (coronavirus) restrictions and greatly encouraged by Russia's invasion of Ukraine. Energy prices were expected to remain high due to uncertainty in the market, with knock-on effects across the economy. Availability of electricity generation in the European Union (EU) has also been below usual levels as of late, while energy demand has increased.
This Regulation establishes an emergency intervention to mitigate the effects of high energy prices through exceptional, targeted and time-limited measures. Those measures aim to reduce electricity consumption, to introduce a cap on market revenues that certain producers receive from the generation of electricity and redistribute to final electricity customers in a targeted manner, to enable Member States to apply measures of public intervention in the price setting for the supply of electricity for household customers and SMEs, and to establish rules for a mandatory temporary solidarity contribution from EU companies and permanent establishments with activities in the crude petroleum, natural gas, coal and refinery sectors to contribute to the affordability of energy for households and companies.
Following political guidance provided by the Council of the European Union on 9 September 2022, the draft law was announced by the President of the European Commission during her State of the European Union (SOTEU) address on 14 September. The measures are compatible with the European Commission's REPowerEU Communication, and the Commission's REPowerEU Action Plan presented earlier in the year. Several Member States had already considered the adoption of redistribution measures, but these solely applied at national level and thus might create uneven conditions for companies in the EU energy market. A political agreement between Member States was reached on 30 September, and the draft law was formally adopted by the Council of the European Union on 6 October. The Act was published on the Official Journal on the following day.
|Subject Tags||Energy Markets|
|Keywords||Electricity Grids | Network, Natural Gas
|International Organisations||European Union [EU]|