Ukraine war: EU moves to cut peak electricity use by 5%

Image source, Reuters

EU chief Ursula von der Leyen wants to cut electricity use and impose windfall taxes on energy firms to fight high prices.

She said that gas and electricity prices had hit all-time highs after Russia invaded Ukraine.

At peak hours, she called for a cut in electricity consumption.

Plans for a cap on natural gas prices in Russia were put on hold.

The plan in Strasbourg targets excess revenues with proposals to skim the profits of low-carbon electricity producers and implement a windfall tax on oil, gas and coal.

The money raised will go to families and businesses in the EU.

The EU's member states hope to reach an agreement by the end of the month.

"Europe's solidarity with Ukraine will remain unshakeable," Ms von der Leyen said in a statement.

Olena Zelensky was in the parliament to hear her husband speak.

Making ends meet is a source of anxiety for millions of businesses and households.

She argued that it was wrong to receive record revenues and profits that benefited from war.

She defended EU sanctions on Russia, saying it was time for them to show resolve.

Nearly 1,000 international companies have left the country, and Russia's financial sector is on life support.

The Russian military ran out of semiconductors so they took chips from dishwasher and fridges. Russia's industry is in bad shape.

When sanctions were imposed on Russia, it was predicted that the economy would fall apart. Revenue from oil and gas sales has helped it.

Since June, Ukraine has been a candidate for membership in the EU.

Thousands of sq km of territory in the east and south were regained by Russian troops this month, according to reports.

Ms von der Leyen said that this is the time to show resolve. For the long haul, we are in it.

She said she believed that Putin would fail and that Europe would prevail.

Russia is locked in an economic struggle with the EU which imposed sanctions after the invasion.

The EU imported 40% of its gas from Russia. The figure has fallen.

Gas prices in Europe were 10 times higher than their average over the last decade.

High gas prices push up power bills because part of the gas is burned to generate electricity.

Ms von der Leyen said EU states had been able to store up to 80% of their gas capacity ahead of the October deadline.

The US, Norway and Algeria are gas suppliers.

A European hydrogen bank will be set up to promote investment of up to 3 billion in that fuel as a green alternative to fossil fuels.

JessicaParker is a correspondent for the British Broadcasting Corp.

The State of the Union speeches are always wide-ranging and this was no different. The circumstances have changed a lot from Ursula von der Leyen's last address.

The energy crisis within the bloc has been made worse by the Russian invasion of Ukraine. Energy market reforms will not be ready until next year at the earliest.

The more immediate proposals include cuts to consumption and taxes on energy companies.

The European Commission president was trying to convey a message. She said that the sanctions against Russia were still in place. Questions still hang over the EU's readiness to impose more penalties against President Putin, while promises of integratingUkraine into the EU's orbit and economy will be watched by its government and citizens.