The Regulation also includes a temporary revenue cap at EUR 180 per MWh on “inframarginal” electricity producers, i.e., technologies with lower costs, such as renewables, nuclear and lignite. These producers have had exceptional revenues, with relatively stable operational costs. Revenues above the cap will be collected by Member State governments and used to financially support energy consumers. The revenue cap shall apply from 1 December 2022 to 30 June 2023.
The Commission has committed to carry out a review by 30 April 2023, taking into account the electricity supply situation and electricity prices across the EU, and present a report on the main findings of that review to the Council.
On 12 December 2022, the Swedish Government published a a proposal to implement new rules so that the Regulation can be applied in Sweden, proposed to enter into force and apply as of 1 March 2023. Please see our newsletter on Proposal regarding temporary revenue cap on electricity for more information regarding the Swedish proposal.