EU Commission to Study Bloc-Wide Windfall Tax on Energy Profits to Cushion Winter Price Shock

The European Commission will examine the feasibility of a bloc-wide windfall tax on energy company profits, telling finance ministers in Luxembourg on Friday it would study the measure as governments seek to shield consumers from a winter price shock, people familiar said. The review follows calls from Germany, Portugal, Spain, Austria, Italy and Poland. German Finance Minister Lars Klingbeil said refineries and oil companies are profiting from the crisis while consumers bear the burden, and expects proposals. France is not opposed. A prior EU revenue cap on inframarginal electricity producers fell well short of a €50 billion ($56 billion) estimate and triggered ongoing court cases, Climate Commissioner Wopke Hoekstra said, noting "it is not without complications" and that several member states oppose such a tax. Disrupted flows through the Strait of Hormuz have driven up diesel prices. Lowering energy prices is set for next week's Brussels summit.