European Commission President Ursula von der Leyen gives a speech at a European Parliament plenary in Brussels, Belgium, March 1, 2022. Photo:Xinhua

The European Commission has five new measures in the pipeline that aim to mitigate the current high prices of electricity, the institution's President Ursula von der Leyen said on Wednesday.

"We are confronted with astronomic electricity prices for households and companies, and with enormous market volatility," she said.

The Commission proposes to save electricity "in a smart way," by "avoiding peak demands."

The revenues of companies producing electricity at a low cost would be capped, she said, explaining that low-cost electricity can be produced by low-carbon energy sources, such as renewables, but despite being cheap to produce, this type of electricity is sold at a high price, generating "enormous revenues."

"We will propose to re-channel these unexpected profits to the [EU] member states so that [they] can support the vulnerable households and vulnerable companies," she said.

In a similar manner, the fossil fuel companies that make unexpected profits should pay a "solidarity contribution," which the member states could also use to support vulnerable households or to invest in "clean home-grown energy sources."

Furthermore, the Commission would "help to facilitate liquidity support by member states for energy companies, which are "currently being requested to provide unexpected large amounts of funds."

Finally, the Commission proposes a price cap on Russian gas as "we must cut Russia's revenues," she said.

Heavily dependent on Russian fossil fuels, the EU has been working to wean itself off Russian energy since the start of the Russia-Ukraine conflict in February. The member states have been seeking to find alternative energy suppliers and are attempting a green transition.

In 2021, nearly 40 percent of the natural gas used in the EU to heat homes and power businesses came from Russia. Today, this figure stands at 9 percent.

The five new measures proposed by the Commission will be on the agenda of an informal meeting of the member states' energy ministers on Friday. 

Xinhua