Council Regulation (EU) 2023/706 amending Regulation (EU) 2022/1369 as regards prolonging the demand-reduction period for demand-reduction measures for gas and reinforcing the reporting and monitoring of their implementation

Summary:

Regulation (EU) 2023/706 - adopted by the Council of the European Union on 30 March 2023 - introducing amendments to Regulation (EU) 2022/1369 as regards prolonging the demand-reduction period for demand-reduction measures for gas and reinforcing the reporting and monitoring of their implementation.

Further information:

Regulation (EU) 2022/1369 established rules to address a situation of severe difficulties in the supply of gas in the European Union (EU). It sought to formalise a spirit of solidarity with a view to safeguarding the security of gas supply. The context was Russia's attempts to use energy as a political weapon against the EU as the war in Ukraine unfolded.

Despite the demand reduction achieved since the adoption of the Regulation, and the efforts to diversify the supply of energy, challenges remained ahead for the EU in this regard. The International Energy Agency (IEA) highlighted in December 2022 that a shortage of gas could occur in 2023, unless measures in place were supplemented by additional actions to replace or save gas. A report prepared by the European Commission also analysed the achievements, the risks and scenarios of supply and shortage until the end of winter in 2024.

This Regulation prolongs the period in which demand reduction action is deemed necessary to guarantee the supply of gas until 31 March 2024. The legal framework set by Regulation (EU) 2017/1928 on security of gas supply is still deemed insufficient to address long-lasting disruptions, which could lead to uncoordinated actions by Member States. The spirit of solidarity is seen as benefitting citizens and industries across the whole of the EU, where some countries are more exposed to disruption than others. The monitoring and reporting obligation of the gas consumption is also increased by this Act.

The draft law was adopted by the European Commission on 20 March 2023. The Council of the European Union adopted the proposal by qualified majority on 30 March 2023. Hungary and Poland voted against it, while Italy abstained. The Act was published in the Official Journal on 31 March 2023.

• Primary Source

Commentary and Analysis

E3G: Press Release, 28/03/2023: The EU wants to repeat 2022’s gas savings but overlooks structural action https://www.e3g.org/news/the-eu-wants-to-repeat-2022-s-gas-savings-but-overlooks-structural-action/

Climate Action Network (CAN Europe): Press Release, 28/03/2023: EU ministers adopt a weak position on gas legislation failing to provide a structural framework for a fossil gas phase out https://caneurope.org/eu-ministers-adopt-a-weak-position-on-gas-legislation-failing-to-provide-a-structural-framework-for-a-fossil-gas-phase-out/

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News

EurActiv, 21/03/2023: EU proposes extending energy crisis measure to curb gas demand https://www.euractiv.com/section/energy-environment/news/eu-proposes-extending-energy-crisis-measure-to-curb-gas-demand/

Euronews, 28/03/2023: After overshooting target, the EU extends its voluntary 15% gas reduction plan until March 2024 https://www.euronews.com/my-europe/2023/03/28/after-overshooting-target-the-eu-extends-its-voluntary-15-gas-reduction-plan-until-march-2

The Sofia Globe, 28/03/2023: EU countries agree to extend voluntary 15% gas demand reduction target https://sofiaglobe.com/2023/03/28/eu-countries-agree-to-extend-voluntary-15-gas-demand-reduction-target/

The Baltic Times, 29/03/2023: EU agrees to one-year extension of measures to reduce gas consumption https://www.baltictimes.com/eu_agrees_to_one-year_extension_of_measures_to_reduce_gas_consumption/

Hungary Today, 29/03/2023: Hungary and Poland Say No to Extending Gas Consumption Cut https://hungarytoday.hu/hungary-and-poland-say-no-to-extending-gas-consumption-cut/

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Official

EUR-LEX: COM(2023)174: Proposal for a Council Regulation amending Regulation (EU) 2022/1369 as regards prolonging the demand reduction period for reduction measures for gas and reinforcing the reporting and monitoring of their implementation https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2023:174:FIN

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/

Council of the European Union: Press Release, 28/03/2023: Member states agree to extend voluntary 15% gas demand reduction target https://www.consilium.europa.eu/en/press/press-releases/2023/03/28/member-states-agree-to-extend-voluntary-15-gas-demand-reduction-target/

Council of the European Union: Press Release, 30/03/2023: Member states agree to extend voluntary 15% gas demand reduction target https://www.consilium.europa.eu/en/press/press-releases/2023/03/30/council-formally-adopts-15-gas-demand-reduction-target/

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