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EU Mulls Energy Price Cap, Windfall Tax Over Russia Gas Risk

  • Europe is also considering measures to cut power demand
  • Official warns of worsening concerns over Russian gas supply
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WATCH: DIW Analyst Claudia Kemfert explains why gas price caps are not the answer for Germany.Markets: European Open.”
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Europe is considering unprecedented interventions in the energy market, including price caps, reducing power demand and windfall taxes on profits as surging prices threaten the economy and push households toward poverty.

Russia has cut gas supplies to the continent, sending power prices soaring and tipping the economy toward a recession. The risk of further disruptions is increasing as the region prepares for a tough winter, according to Mechthild Woersdoerfer, senior energy official at the European Commission. That would deepen the damage, which is forcing the European Union to devise plans to step in.