Security of gas supplies – Photo EC.jpg
(BRUSSELS) – Negotiators of the Council and the European Parliament reached an agreement late Wednesday on a new security of gas supply regulation with the aim of preventing future gas supply crises in Europe.
The new rules entail a regionally coordinated approach to security of supply measures among EU Member States. This will put the EU in a better position to prepare for and manage gas shortages if a crisis occurs.
For the first time, a ‘solidarity principle’ will apply. This means that Member States will have to help their neighbours out in the event of a serious crisis so that European households do not stay in the cold.
The agreement is a big step forward towards strengthening the EU’s energy security, said Commissioner for Climate Action and Energy Miguel Arias Canete: “The new regulation paves the way for better coordinated crisis prevention and handling of potential gas crises by combining standards set at EU level with regional cooperation and solidarity. This increases our effectiveness and reduces costs for EU consumers,” he said.
Gas covers around a quarter of the EU’s energy demand. The EU’s current annual gas demand of around 400 billion cubic metres (bcm) is projected to remain relatively stable in the coming years. Around 65% of the EU’s gas is imported – its main suppliers are Russia, Norway and Algeria.
The gas crises of 2006 and 2009 led to renewed efforts towards EU security of gas supply such as obliging companies to ensure gas supply to protected customers even in the event of supply disruption, and providing for the installation of bi-directional capacity (reverse flows).
However, stress tests showed many EU countries still vulnerable to supply disruptions, and the new package increases transparency on the gas market and strengthens the EU’s resilience to gas supply disruptions.
Main improvements:
- Introduction of a solidarity principle: in the event of a severe gas crisis, neighbouring Member States will help out to ensure gas supply to households and essential social services.
- Closer regional cooperation: regional groups facilitate the joint assessment of common security of supply risks and the development of an agreement on joint preventive and emergency measures.
- Greater transparency: Natural gas companies will have to notify long-term contracts that are relevant for security of supply (28% of the annual gas consumption in the Member State).
With the political agreement between the EU institutions settled, the text now has to be formally approved by the European Parliament and the Council. The revised Security of Gas Supply Regulation will then be published in the Official Journal of the Union, entering into force 20 days after publication.
