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Gas: EU considers extending consumption reduction targets

The European Commission is considering extending the gas reduction mechanism adopted last year to address the gas shortage in Europe. However, there are differing views on the approach to be taken.

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European energy ministers met in Stockholm to discuss the extension of emergency measures to deal with the gas shortage. Following the war in Ukraine and the drop in Russian supplies, EU member states agreed last July to reduce their gas demand by 15% over the period from August 2022 to March 2023. However, this “voluntary” target was far exceeded thanks to good weather and high tariffs that encouraged households and businesses to save money. According to Eurostat, gas consumption in the EU decreased by 19.3% between August and January compared to the average consumption over the same period between 2017 and 2022.

Extension of the emergency text adopted by the EU

The European Commission is considering extending the emergency text adopted last year to reduce European gas demand. The text expires at the end of March and the Commission must decide whether to extend it in order to achieve the goal of filling gas reserves to 90% by November 1. Member States will have to approve any new “voluntary” European gas demand reduction targets for the winter of 2023/2024.

Divergent opinions

There are differing views on the approach to reducing gas consumption. Germany would like to see a higher target than the 15% targeted last year in order to face the risks of a new price surge. German Secretary of State Sven Giegold said it was crucial to increase the energy savings target to send a signal to the market that would calm any speculation. However, other countries, such as the Czech Republic, are more reserved about what to do. The Czech Energy Minister stressed that the solutions approved last year were not technically replicable and called for medium-term measures, such as energy efficiency.

The extension of the EU gas reduction mechanism is crucial to address the gas shortage. While some Member States want stricter targets for reducing gas consumption, others are more reserved about the feasibility of such measures. The European Commission will need to balance the interests of individual Member States while ensuring that gas reduction targets are achievable and effective.

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