The European Union wants to raise $140 billion in windfall taxes from energy companies to soften the hit to consumers from surging prices

The European Commission wants to impose a tax on the profits of energy companies in the EU in order to help consumers with high bills.

European Commission President Ursula von der Leyen said in her State of the Union address that the EU wants to raise 140 billion in windfall taxes on low cost electricity producers.

She said that the companies were making revenues they never accounted for. Profits are good in the social market economy. It is wrong to get record profits from war and consumers.

As Russia reduces gas flows into Europe, member states will use the money to help consumers and businesses with high bills.

A mandatory threshold would be set for prices charged by companies that produce low-cost energy from non-gas sources, according to the Financial Times.

The EC wants major oil, gas, and coal companies to contribute to a crisis and wants electricity users to cut their consumption by at least 5% during peak hours.

Russia cut energy supplies to Europe in response to sanctions imposed on Moscow for launching a war against Ukraine, causing Dutch gas futures to jump about 1,000%. Electricity prices have gone up as a result of gas.

Germany is considering nationalizing Uniper as the utility company faces growing financial losses. In the first half of the year, Uniper lost 12.4 billion as gas prices went up.