(Bloomberg) -- The European Union is zeroing in on a plan to cap energy companies’ profits and channel the cash to consumers, as it steps closer to energy rationing in a bid to tame the crisis.

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The Commission wants to cap revenues from lower-cost power generators; introduce a levy on fossil fuel companies’ excess profits; and introduce a mandatory consumption cut.

Commission President Ursula von der Leyen’s plans still need to be finalized and ultimately signed off by member states and there are deep divisions as to how to address the crisis. Already the most controversial idea -- to cap the price of imported Russian gas -- has been shelved for more talks. But gas prices are already falling, at least in part because of European action.

The bloc is also trying to create tools to ease volatility in energy markets as surging prices have made for ballooning margin calls. Several national governments have taken steps already -- boosting market confidence and helping to ease prices. The Commission is working with European banking regulators, “assessing issues related to the eligibility of collateral and margins, and possible ways to limit excessive intra-day volatility,” according to a draft document.

The challenge will be to find an EU-wide solution that would fit each of the member states with their varying sources of energy, wealth and industrial strength. Von der Leyen sets out her plans on Wednesday, and the Czech rotating presidency has called another emergency meeting for Sept. 30.

The proposals are:

• Capping the power-generation revenues of renewable and nuclear companies at 180 euros per megawatt hour

• A temporary levy on companies in oil, gas, coal and refinery industries of at least 33% of their extra profits. Based on pre-tax profits of fiscal year 2022 that are more than 20% higher than the average of the three years starting in 2019. It’s exceptional and temporary and up to member states to apply.

• A target to cut overall consumption by 10% and a mandatory goal lowering demand during selected peak hours by 5%

Shares in oil producers TotalEnergies SE and Repsol SA declined on Tuesday. But utility stocks rose on the news, with the Stoxx 600 Utilities Index climbing 0.4%. John Musk, an analyst at RBC said the cap was still “well above what companies may have been planning for pre-Ukraine,” and the measures “won’t discourage future renewable investment.”

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