Revenue caps for electricity producers should end this month; no longer desirable, says Commission

The European Commission has issued recommendations on extending the main emergency regulation, which introduced, among other measures, revenue caps for electricity producers (generally set at 180 EUR/MWh). According to the European Commission, extending the regulation is neither necessary nor proposed. On the contrary, the existence of revenue caps increases investor uncertainty, according to the Commission, and they should therefore end at the close of June.

A whole range of measures was adopted within the European Union in response to the energy crisis, which peaked last year. Most of these measures are only temporary, and any extension is assessed on a case-by-case basis. For example, the measure requiring Member States to reduce natural gas consumption was, following an assessment, extended by one year until the end of March 2024.

Although the energy crisis is gradually subsiding, a number of measures remain in force.

An extension is now being considered for what is probably the most controversial regulation, adopted on 6 March 2022. It led to the introduction of: