According to an official document obtained by The Guardian journalists, the European Commission headed by Ursula von der Leyen will abandon the price cap on natural gas imported from Russia, deciding instead to abandon the idea of ​​excessive taxation of energy companies.

A draft of the “emergency instrument” for electricity, seen by British journalists, contains no restrictions on gas imports from Russia, but also no restrictions on gas imports from other countries after the bloc’s member states failed to reach an agreement last week .

Instead, the EU executive is expected to introduce a tax on the high profits of companies that burn fossil fuels, as well as a separate measure for low-carbon power producers.

Oil, gas and coal companies will have to make a “solidarity” financial contribution based on the “taxable surplus generated in fiscal year 2022,” according to a document drafted by the Commission.

The Guardian notes that Ursula von der Leyen is likely to unveil her plan to tackle rising electricity prices in the bloc on Wednesday alongside her State of the Union speech.

The final text is likely to be changed, but the document as it stands now shows that the Brussels executive doubts it will get enough support from member states to impose a maximum price on Russian gas in response to the February 24 invasion of Ukraine.

Member countries that import large volumes of natural gas from Russia, including Hungary, Slovakia and Austria, have spoken out against the measure due to fears that the Kremlin would completely cut off all natural gas supplies.

In fact, Russian President Vladimir Putin has threatened to do just that if the bloc accepts von der Leyen’s proposal on September 7.

Romania’s position on limiting the price of Russian gas

Romania backed a surprise proposal at last Friday’s energy ministers’ council in Brussels, calling for price caps on gas imported from Russia, but also on all gas imported into the EU bloc.

The position of the government in Bucharest was made public through a press release issued by the Ministry of Energy on Friday afternoon:

“As far as short-term intervention measures are concerned, Romania supports a fair approach to all member states. The price ceiling for natural gas at the EU level, including imported from Russia, is supported by several member states, including Romania, and can significantly contribute to reducing the volatility of the European market.

In this sense, Romania emphasized the importance of activating the European Energy Platform for the joint purchase of natural gas in order to ensure a fair distribution of additional volumes of gas and LNG attracted to the EU.”

Among the countries that asked for a blanket cap despite the European Commission’s proposal were countries with a high degree of dependence on Russian gas, such as Hungary, Austria, Slovakia, Poland, the Czech Republic, as well as Western countries such as France and Belgium. Romania was also in this platoon, although the degree of dependence is one of the lowest in the EU.

Romania provides all its consumption with its own production and needs imports only in winter, at the peak of consumption.

The countries that were categorically against this idea and supported the European Commission were the Baltic countries.

The Norwegian approach to the energy market

Gas and oil companies will have to “share” surplus profits to help European households and industry cope with skyrocketing electricity bills, according to a document drawn up by the EU.

“We will propose that there should be a joint contribution in the case of fossil fuel companies. Because all sources of energy must help overcome this crisis,” said Ursula von der Leyen on September 7.

The EU’s approach differs from that of Norway, which became Europe’s largest supplier of natural gas earlier this year after Russia limited or completely stopped gas exports to some of the bloc’s member states.

In August, when asked about the introduction of additional taxes for energy companies, Norwegian Energy Minister Terje Asland said that the government in Oslo had no intention of doing so:

“We have no discussions about additional fees. The additional revenues of the companies now form the basis for future investments and the basis for the entire transformation of the energy sector.”

“Basically, the market is predictable. When there is a rarity, the prices are high. It also helps increase production and redirects gas to markets that need it the most,” he explained.

“Disrupting the market and creating rules that look good now can contribute to the destruction of the foundations for building stability and confidence in the future,” the Norwegian minister emphasized.

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