The European Union has agreed to impose emergency measures to charge energy firms on their record profits. According to BBC News, ministers have agreed windfall taxes on certain energy companies, as well as mandatory cuts in electricity use.

The plan includes a levy on fossil fuel firms' surplus profits and a levy on excess revenues made from surging electricity costs. The cash raised is expected to go to families and businesses.

But the bloc is divided on whether and how to cap the wholesale price of natural gas.

It comes as Europe braces itself for a difficult winter due to the cost-of-living crisis and squeeze on global energy supplies.

The bloc is largely trying to wean itself off Russia energy but it has left it scrambling for other alternative, expensive, sources.

Energy firms are getting much more money for their oil and gas than they were last year, partly because demand has increased as the world emerges from the pandemic and more recently because of supply concerns due to Russia's invasion of Ukraine.

EU ministers estimate that they can raise €140 billion ($137.2 billion) from the levies on non-gas electricity producers and suppliers that are making larger-than-usual profits from the current demand.