EU plans to raise €140bn through windfall tax on energy firms

The European Union announced plans on Wednesday to raise €140bn by capping revenues for non-gas energy suppliers as it looks to tackle the energy crisis.

The EU also proposed a temporary levy on fossil-fuel producers.

Speaking in Brussels, European Commission president Ursula von der Leyen said: "In these times it is wrong to receive extraordinary record revenues and profits benefiting from war and on the back of our consumers. In these times, profits must be shared and channelled to those who need it most."

She added: "Millions of Europeans need support to pay their energy bills. Some companies produce electricity at low cost and make great margins."

She proposed a cap on their revenues that will raise more than €140bn for member states to "cushion the blow directly".