Ukraine war: EU moves to cut electricity use

The European Union President Ursula von der Leyen has called for cuts to electricity use across the zone and windfall taxes on energy firms to tackle high prices.

EU chief told the European Parliament that gas and electricity prices had hit all-time highs following Russia-Ukraine war.

She called for electricity consumption to be cut at peak hours by at least 5 per cent. But plans for a cap on the price of natural gas_ a key Russian export to the EU_ were put on hold.

The plan outlined in Strasbourg targets "excess revenues" with proposals to skim the profits of low-carbon electricity producers and implement a de facto windfall tax on the oil_ gas and coal sectors.

The money raised_ estimated to be ¬ 140bn would go to families and businesses across the EU's 27 states.

Companies producing energy from low-carbon sources such as wind_ solar and nuclear would face a cap of ¬ 180 per megawatt hour (MWh) on their revenue.

By comparison_ the front-year electricity price in Germany_ the EU's biggest economy_ was trading at just below ¬ 500/MWh on Wednesday.

The windfall tax on fossil fuel producers and refiners would require them to contribute 33% of their taxable surplus profit.

The EU's member states will pore over the proposals with hopes of an agreement by the end of this month.