To address the crisis, Brussels is preparing an "emergency intervention."
According to Ursula von der Leyen, president of the European Commission, who was quoted by Bloomberg on Monday, the EU is preparing urgent measures to reduce rising electricity prices.
In a lecture at the Bled Strategic Summit in Slovenia, von der Leyen reportedly stated that "the increasing electricity prices are now exposing, for various reasons, the inadequacies of our current electrical market design."
It was created for quite different reasons and under entirely different conditions. We are currently working on both an urgent intervention and a fundamental overhaul of the electrical market because of this, she continued.
The specifics of the intervention plan are still being worked out, but von der Leyen claims that it might be announced as early as this week.
Over the past year, power costs in the EU have increased by over 10 times, increasing inflation and the financial stress on businesses and households still recuperating from the pandemic. To aid consumers and businesses affected by the crisis, governments have already set aside around €280 billion ($279 billion) in tax breaks and subsidies. To fulfill the union's voluntary goal of reducing gas demand by 15%, governments have also started to restrict energy use, prohibiting outside illumination for buildings and lowering inside heating temperatures.
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