EU to impose windfall tax on oil giants to send profits to 'those who need it'

European Commission President Ursula von der Leyen has said that "it is wrong to receive extraordinary benefits from war" while EU leaders were making plans for this winter

Power pylons hold power cables running away from the Keadby SSE (Scottish and Southern Energy) gas-fired power station near Scunthorpe (

Image: AFP via Getty Images

The EU chief today pledged to impose a windfall tax on energy giants to send record profits to 'those who need it'.

Ursula von der Leyen spoke after Brussels drew up draft proposals for all EU countries to impose a 33% levy on "excess taxable profits made in the 2022 financial year" . It would apply to oil, gas, coal and refining companies established in the EU.

In addition, the head of the European Commission has promised to cap the income of electricity producers, who have benefited from the increase in gas prices without using gas to generate electricity.

Draft plans seen by Reuters suggested a price limit per megawatt-hour for wind, solar, nuclear and biomass power plants - of 180 euros/MWh as prices trade near 500.

The measures were part of a series she presented during her annual State of the Union speech in Strasbourg.

"Making ends meet is becoming a source of anxiety for millions of businesses and households," she said.

Ursula von der Leyen spoke after Brussels drew up draft proposals for all EU countries to impose a 33% levy (

Picture:

REUTERS)

"In these times, it is wrong to receive extraordinary record revenues and profits benefiting from war and on the backs of our consumers.

"In these times, benefits must be shared and channeled to those who need it most."

It comes a few days after Liz Truss