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Germany Wants Power-Market Overhaul to Dampen Soaring Prices

  • Economy minister proposes changing current pricing mechanism
  • Habeck reiterates backing for windfall tax on energy companies
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Germany Seeks to Overhaul European Power Market

Germany’s economy minister proposed tackling soaring energy costs over the longer term by reforming power markets so that prices are no longer coupled to the most expensive supplier.

Under the current system, producers with lower costs such as in the wind or solar sector are paid the same as those with higher costs such as operators of gas-fired power plants.