EU proposes rationing electricity to ‘flatten the curve’

The European Union will be regulating electricity to help the continent’s alleged energy shortage, which EU President Ursula von der Leyen has blamed on Russia and “climate change.” The move comes in the same week that Russia decided to cut off its oil supply to Europe “indefinitely”. 

In a statement Wednesday, von der Leyen praised her government for finding other energy sources besides Russia – such as Norway – and for making “massive investments” in environmentally friendly renewable energy, which she said is “our energy insurance for the future.” 

Yet von der Leyen then accused Russia of “actively manipulating the gas market” and blamed “the effects of climate change” for an energy shortage in Europe. To remedy the situation, the government is proposing five measures to “flatten the curve” of peak energy demand by placing a cap on electricity usage. 

“The first one is smart savings of electricity,” the president said in the statement. “If you look at the costs of electricity, there are peak demands. And this is what is expensive, because, in these peak demands, the expensive gas comes into the market. So what we have to do is to flatten the curve and avoid the peak demands. We will propose a mandatory target for reducing electricity use at peak hours.” 

Second, the EU will place a cap on the revenue generated by energy companies – even those with low carbon emissions – which the government has now decided is too much. 

“We will propose a cap on the revenues of companies that are producing electricity with low costs,” continued von der Leyen. “The low-carbon energy sources are making in these times – because they have low costs but they have high prices on the market – enormous revenues.” Von der Leyen said these are “revenues they never dreamt of; and revenues they cannot invest to that extent.” 

The government will take those extra profits and re-distribute the wealth. 

“So, it is now time for the consumers to benefit from the low costs of low-carbon energy sources like, for example, the renewables. We will propose to re-channel these unexpected profits to the Member States so that the Member States can support the vulnerable households and vulnerable companies.” 

The third measure proposes forcing energy companies with high fossil fuels to pay a “solidarity contribution” because “all energy sources must help to overcome this crisis.” 

The fourth measure would help provide liquidity support for energy companies, and the fifth would place a cap on Russian gas, even though Russia already decided this week to cut off its supply to Europe. 

“These are tough times, and they will not be over soon,” von der Leyen concluded. “But I am deeply convinced that, if we show the solidary [sic], the unity and we have the determination for that, we have the economic strength, we have the political will, that then we shall overcome.” 

It is unclear if the “tough times” will be for all European citizens or only those with limited means. 

Many have pointed out that President Trump warned Germany of its dependency on Russian gas in 2018, which earned him widespread mockery. 

“Reliance on a single foreign supplier can leave nations vulnerable to extortion and intimidation and that is why we congratulate European states such as Poland for leading construction of a Baltic pipeline so that nations are not dependent on Russia to meet their energy needs,” Trump told the UN General Assembly.   

But to Germany, who insisted on building the Nord Stream 2 natural gas pipeline with Russia, Trump issued a franker warning.  

“Germany will become totally dependent on Russian energy if it does not immediately change course,” said Trump, eliciting snickers from German diplomats present.