EU proposes windfall levy to claw back surplus profits from fossil fuel companies

The European Commission announced on Thursday that it proposed a voluntary target for European Union countries to cut overall monthly electricity use by 10% compared to the same period in recent years, as reported by Reuters.

Additional takeaways

"EU Commission proposes 180 euros per megawatt hour revenue cap for non-gas fuelled power generators."

"EU revenue cap would apply to wind, solar, biomass, lignite, nuclear and some hydropower generators."

"EU proposes windfall profit levy to claw back surplus profits from fossil fuel companies."

"EU levy would recoup 33% of oil, gas, coal, refining companies' surplus taxable profits in the fiscal year 2022."

"EU levy would apply to fossil fuels companies that have tax obligations in EU countries."

"EU proposes mandatory target for EU countries to cut electricity use 5% during peak price periods."

Market reaction

The shared currency holds its ground following this development and the EUR/USD pair was last seen rising 0.32% on the day at 1.0002.