The European Commission has called on EU countries to curb gas and electricity consumption to help contain price pressures amid the global energy crisis.
The call was made in a letter dated 25 September, signed by EU Commissioner for Energy and Housing Dan Jorgensen. The document is addressed to the ministers responsible for energy in the member states.
“In the context of limited global supply and high price volatility, reducing demand can be an effective tool to contain prices“, says Jorgensen.The European Commissioner calls on governments to take measures to reduce demand for gas and electricity “for as long as necessary“. According to him, the situation is complex, but “there are currently no immediate risks to security of supply“.
Stocks are below 2021 levels.
Gas storage facilities in Europe are filled to an average of 68% of their capacity. For the same period in 2021, the level was 71%.
The letter states that the war in Iran is disrupting global gas supplies and contributing to historically low European stocks. The European Union has a primary goal of having storage facilities reach 90% full by early November.
Additional flexibility was granted to member states in March. It allows countries to aim for 80% full this year, instead of the original target of 90%. This is intended to avoid panic buying and contain costs.
Commission urges temporary measures
According to Jorgensen, price regulation actions should be “targeted“ and “temporary“, so as not to lead to a sharp increase in demand.
The energy pressure is already being felt in some countries. Germany enters the heating season with record low gas stocks, and in August the Netherlands warned of possible gas shortages in a harsh winter.
Sources: Politico