Emergency measures to control power prices are being considered. The regulatory cloud on the industry will be lifted by the higher than expected price cap proposals.
The only sector that gained ground on Wednesday was the utilities index, which was up 2.5%. They added more than 4%. The green-energy stocks advanced.
A price cap on Russian gas imports, a mandatory target reduction of electricity use, and a levy on fossil-fuel producers are some of the measures planned by the EU.
The EU may remove uncertainty for the sector and make it sustainable for consumers again. The price cap is much higher than the cost of electricity.
The EU is considering emergency power-use cuts, price caps, and profit grabs.
The proposed power price cap could be set at 200 euros per megawatt hours and would apply to revenues obtained by the production of electricity from wind, solar and geothermal energy.
Between 2016 and 2020 the average German power price was 38 euro per megawatt hours.
The price cap would benefit renewables, according to Jens. He said it was high enough to not discourage future investment in non-gas producing technologies.
An emergency meeting of energy ministers will discuss the EU plan. Legislative proposals will include more details once the commission gets political approval.
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