Energy crisis: EU chief wants to tap excess producer profits

BRUSSELS (AP) — A top European Union official unveiled a plan Wednesday to cap the revenue of electricity producers that are making extraordinary profits because of the effects of Russia's war in Ukraine and climate change, saying the proposal could raise $140 billion to help people hit by spiraling energy prices.

It's one of several proposals aimed at containing an energy crisis in Europe that could lead to rolling blackouts, shuttered factories and a deep recession this winter. Others include slashing energy use and reforming the electricity market, which all need approval by the 27 EU countries. As the bloc supports Ukraine, Russia has reduced or cut off natural gas to 13 member nations, surging gas and electricity prices that are expected to go higher as demand peaks during the cold months.

Europe also has been hit by a drought that experts say is the worst in 500 years. Prices for natural gas — which is used to power industry, heat homes and generate electricity — are now 10 times higher in the EU than before COVID-19 took hold in 2020.

“Russia keeps actively manipulating our energy market," European Commission President Ursula von der Leyen told EU lawmakers in Strasbourg, France. "So, this market is not functioning anymore.”