Brussels – Winter is approaching, and the European Commission is urging Member States to pay the utmost attention to energy consumption ahead of the season. In a letter addressed to the energy ministers of the 27 Member States, a copy of which Eunews has seen, the European Commissioner for Energy, Dan Jørgensen, warns that “the EU’s dependence on imported fossil fuels exposes us to disruptions in the global energy geopolitics.” He stressed the profound nature of the current situation: “As we discussed in the Energy Union Task Force, we are facing a price crisis linked to a supply crisis.”
Summer weather conditions also weighed on European markets. Jørgensen points out that an exceptionally hot and dry summer has “put pressure on the electricity systems of several Member States.” Prices, he explains, “have consequently remained high and volatile, and gas injections into storage facilities have fallen as gas has been used for electricity generation: this serves as a reminder of the interdependence between the EU’s electricity and gas systems.”
Although European gas storage levels are exceptionally low, the European Commission has reassured the public that the system remains stable overall: “At present, there are no immediate risks to security of supply.” The latest meeting of the Gas Coordination Group, which convened last Thursday (24 September), underscored this point. Compared with the past, the Union appears more solid: “The situation is very different from that of the winter of 2021, and we are collectively much better prepared, thanks to the development of significant new LNG import capacity, the steady increase in wind and solar capacity, and the reduction in gas demand.”
To manage the refuelling phase without driving up prices, Brussels is calling for the use of existing regulatory leeway. “Making use of the flexibility provided for in Regulations on Gas Storage and reducing the refuelling target to 80 per cent can help alleviate the immediate pressure on prices and refuelling costs.” However, the main lever remains reducing consumption: “In the context of limited global supply and high price volatility, reducing demand can be an effective tool to help keep prices in check.” To this end, the Commissioner calls on governments to “take or continue to take measures capable of supporting gas injections or reducing demand for gas and electricity for as long as necessary.”
Among the measures Jørgensen suggested are reducing consumption during peak hours, using smart meters, capping temperatures in public buildings, switching off non-essential night-time lighting and activating interruptibility contracts. Finally, Jørgensen urges governments to exercise caution regarding national support measures: “Any price-regulation measure must be carefully designed. It should be well-targeted and temporary to avoid undesirable effects such as maintaining unnecessary demand for gas or even increasing it, negative cross-border impacts or distortions of the internal market.”
English version by the Translation Service of Withub
