The bloc unveiled plans for a price cap on Russian gas imports in retaliation for the war in Ukraine and measures to help member states deal with energy pressure. Ursula von der Leyen, president of the European Commission, presented five proposals on Wednesday, hours after Russia’s leader threatened to turn off the taps to any Western nation that moves to impose price caps on his country’s energy. He said Russia had become an “unreliable supplier” after state-run Gazprom decided to indefinitely shut off the taps on the major Nord Stream 1 pipeline, adding that the EU’s dependence on Russian gas had fallen significantly since the invasion and stocks had recovered . to 82% across the block. However, one of the other measures betrayed the perilous position the bloc continues to face ahead of winter. Ms Von der Leyen proposed a mandatory reduction in electricity use across the EU to maintain power by 10% per month based on the five-year average and by an additional 5% during peak price periods. He also planned a cap on the revenue of non-gas-powered generators – boosted by record crude energy costs – to re-channel their “windfalls” into measures that support households and companies. Image: Ursula von der Leyen said consumers across the EU were facing “astronomical” bills A windfall tax on fossil fuel companies was also on the cards, he said, along with help for utilities struggling under the weight of wholesale prices. The plans, which would have to be agreed by member states, may face opposition. Some EU countries are wary of capping Russian gas prices in case the dwindling supply they continue to receive from Moscow costs them. Following confirmation that the UK plans to cut its own energy bills through a taxpayer-funded bailout. Details are expected this week. Ms Von der Leyen explained that the planned cap on wholesale prices from Russia was now possible after the bloc had eased its dependence on Russian energy. “We have increased our readiness and weakened Russia’s commitment to our energy supply through demand reduction – which allowed our joint reserves to be at 82%,” he said. “Through diversification we have increased LNG or pipeline gas deliveries from the US, Norway, Algeria, Azerbaijan and others. For example, Norway now delivers more gas to the EU than Russia.” The UK has also been pumping record volumes into the EU via interconnections for months as part of EU efforts to boost storage. Ms Von der Leyen said Russian gas accounted for 9% of imports, up from 40% in February before the invasion of Ukraine.
