Council Recommendation on continuing coordinated demand-reduction measures for gas

Summary:

Recommendation adopted by the Council of the European Union on 25 March 2024 addressing the continuing coordinated demand-reduction measures for gas.

Further information:

Following Russia's invasion of Ukraine, the flow of gas from Russia to the European Union (EU) has been intentionally disruptive in an effort to use energy as a political weapon. This disruption of gas supply affected the price and volatility of gas and electricity, on inflation, and on the EU's general financial and macroeconomic stability, as well as the economic well-being of its citizens. Competitiveness of EU businesses, in particular energy-intensive industries, was negatively affected while citizens face reduced purchasing power.

Regulation (EU) 2022/1369 established rules to address a situation of severe difficulties in the supply of gas in the EU. It sought to formalise a spirit of solidarity with a view to safeguarding the security of gas supply. Council Regulation (EU) 2023/706 prolonged the Regulation by one year until 31 March 2024. However, there are further risks in place regarding the Russian supply, a deteriorating geopolitical threat landscape, uncertain weather conditions and developments in the global gas market.

This Recommendation urges the EU Member States to continue their coordinated demand-reduction measures after the expiration of Regulation (EU) 2022/1369. While Member States face a varying degree of exposure to supply disruptions, any gas supply shortages would cause harm to the economies of all Member States. It is also recommended that countries continue reducing their demand by 15% compared to the reference period of 2017 to 2022.

The draft text was put forward by the European Commission on 27 February 2024. The Council of the European Union reached a political agreement on the proposed Recommendation on 4 March. The text was formally adopted on 25 March 2024 and published in the Official Journal on 27 March 2023.

• Primary Source

News

Reuters, 27/02/2024: EU softens gas consumption curbs in sign energy crisis easing https://www.reuters.com/business/energy/eu-softens-gas-consumption-curbs-sign-energy-crisis-easing-2024-02-27/

EurActiv, 29/02/2024: ‘We don’t need Russian gas’: Will Austria finally ditch Gazprom? https://www.euractiv.com/section/energy-environment/news/we-dont-need-russian-gas-will-austria-finally-ditch-gazprom/

Politico, 01/03/2024: EU warns of winter energy price hike as Russia-Ukraine gas deal ends https://www.politico.eu/article/eu-warns-of-winter-energy-price-hike-as-russia-ukraine-gas-deal-ends/

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Official

EUR-LEX: COM(2024)101: Proposal for a Council Recommendation on continuing coordinated demand-reduction measures for gas https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2024:101:FIN

European Commission: DG Energy: Security of gas supply https://energy.ec.europa.eu/topics/energy-security/security-gas-supply_en

General Secretariat of the Council: Policies: Energy prices and security of supply https://www.consilium.europa.eu/en/policies/energy-prices-and-security-of-supply/

European Commission: Press Release, 27/02/2024: Commission recommends that Member States continue saving gas to secure supplies and stabilise markets https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1142

Council of the European Union: Press Release, 04/03/2024: Security of gas supply: member states agree on recommendation to continue voluntary demand reduction measures https://www.consilium.europa.eu/en/press/press-releases/2024/03/04/security-of-gas-supply-member-states-agree-on-recommendation-to-continue-voluntary-demand-reduction-measures/

Council of the European Union: Press Release, 25/03/2024: Security of gas supply: Council gives final green light to voluntary demand reduction measures https://www.consilium.europa.eu/en/press/press-releases/2024/03/25/security-of-gas-supply-council-gives-final-green-light-to-voluntary-demand-reduction-measures/

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