EU Weighs Price Cap on Power From Renewables, Nuclear 

(Bloomberg) -- The European Union is considering capping the power-generation revenues of renewable and nuclear companies at 180 euros to 200 euros per megawatt hour as part of an emergency package, according to people familiar with the talks. 

The plans still need to be finalized and ultimately signed off by member states. Deep divisions on how to design the package to stem the energy crisis were on display at a meeting of ministers last week and some governments are likely to push for changes.

The Commission is also planning to propose a temporary levy on companies in oil, gas, coal and refinery industries of at least 33% of their extra profits, said the people, asking not to be identified commenting on private talks. The basis will be pre-tax profits of fiscal year 2022 that are more than 20% higher than the average of the three years starting in 2019.

Read: Germany Plans $68 Billion Loan Guarantees for Energy Firms 

To reduce power demand, the EU’s executive arm is eyeing a target to cut overall consumption by 10% and a mandatory goal lowering demand during selected peak hours by 5%, the people said. That will also need to be approved by national governments, and some are clearly opposed to mandatory demand reduction measures.

Utility stocks rose on the news, with the Stoxx 600 Utilities Index climbing 0.7%. TotalEnergies SE and Repsol SA declined.

The Commission will unveil the plan on Wednesday. The Czech Republic, which holds the EU’s rotating presidency, has called for a second emergency meeting on the energy crisis on Sept. 30.

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