How the EU intends to collect “windfall profits” from energy firms

EUROPE IS EMBROILED in an energy crisis. Since Russia invaded Ukraine, and subsequently cut its energy exports to Europe, wholesale prices for gas and electricity have skyrocketed. Consumers and businesses are worried about paying hefty bills. In response, governments across Europe have implemented a patchwork of national measures to lower prices, save energy and support incomes. But many Europeans are outraged that energy companies are making record profits. On September 14th Ursula von der Leyen, the president of the European Commission, lamented that it was wrong to make fortunes “from war and on the back of consumers”. She has proposed a union-wide scheme to skim off €140bn ($140bn) in “excess” profits. Energy ministers are due to meet on September 30th to agree on the details. But how might that work?