Gas supplies – secure gas – Photo EC
(BRUSSELS) – The EU Commission set out ideas Wednesday for collective European action to address the root causes of the problem in the gas market and ensure security of supply at reasonable prices for next winter.
A legislative proposal tabled by the EU executive introduces a minimum 80% gas storage level obligation for next winter to ensure security of energy supply, rising to 90% in subsequent years.
Addressing concerns about continued high energy prices, the Commission has also adopted a Communication setting out the options for market intervention at European and national level, and assessing the pros and cons of each option.
The Commission stands ready to create a Task Force on common gas purchases at EU level. By pooling demand, the Commission says the Task Force would facilitate and strengthen the EU’s international outreach to suppliers to help secure well-priced imports ahead of next winter. A joint negotiation team led by the Commission would hold talks with gas suppliers, and would also prepare the ground for future energy partnerships with key suppliers, looking beyond LNG and gas.
The legislative proposal on gas storage requires Member States to ensure that their underground gas storage is filled up to at least 80% of capacity by 1 November 2022, rising to 90% for the following years, with intermediary targets from February to October.
Gas storage facilities are seen as critical infrastructure to ensure security of supply. A new mandatory certification of all storage system operators will avoid potential risks resulting from outside influence over critical storage infrastructure, meaning that non-certified operators will have to give up ownership or control of EU gas storage facilities. In addition, for a gas storage facility to close down its operations it would need to have an authorisation from the national regulator. To incentivise the refilling of EU gas storage facilities, the Commission is proposing a 100% discount on capacity-based transmission tariffs at entry and exit points of storage facilities.
Several options for emergency measures to limit the impact of high electricity prices have been put forward by Member States. However, all options on the table carry costs and drawbacks, says the |Commission The short-term options on the electricity price can be broadly grouped in two categories:
As the Communication notes, there is no single easy answer to tackle high electricity prices, given the diversity of situations among Member States in terms of their energy mix, market design, and interconnection levels.
The Commission is laying out the pros and cons of different approaches for the further consideration of European Leaders, and is ready to take forward its work as appropriate. While many of the options above address the symptoms, it is important to tackle the root causes of the current high electricity prices, with collective European action on the gas market.
The Commission will table its detailed REPowerEU plan and assess options to optimise the electricity market design in May, and stands ready to propose an EU energy savings plan. The Commission is also considering providing guidance to Member States on how to make best use of targeted country-specific derogations under the Energy Taxation Directive.
Communication on security of supply and affordable energy prices
Annex to the Communication on security of supply and affordable energy prices
Proposal for a regulation on gas storage
Annex to a proposal for a regulation on gas storage
EU options to mitigate high energy prices - guide
