The European Commission has called on member states to reduce gas and electricity demand to help tame soaring prices and manage constrained global supply. Energy Commissioner Dan Jørgensen urged ministers to implement targeted and temporary measures to avoid panic buying and alleviate costs.
Soaring energy costs and constrained global supply pose a significant risk to European economies, potentially leading to higher inflation, reduced industrial output, and increased household expenses. The Commission's call for demand reduction aims to mitigate these impacts by managing consumption and stabilizing prices.
The European Commission has urged EU member states to implement measures to reduce their demand for gas and electricity in response to a global energy crunch and surging prices. Energy Commissioner Dan Jørgensen, in a letter dated September 25 and seen by POLITICO, asked ministers to introduce new measures "in the context of constrained global supply and high price volatility." He argued that demand reduction can be an effective tool to contain prices and invited ministers to take steps to reduce demand for gas and electricity "for as long as necessary."
Jørgensen noted that while the situation is "challenging," there are "currently no immediate risks to security of supply." He also advised that measures taken by EU countries to regulate prices should be "well-targeted" and "temporary" to avoid a surge in demand.
Gas storage levels in Europe are currently at 68% of capacity, which is below the 71% measured at the same period in 2021. The EU has a baseline target to have gas storage filled to 90% by the start of November, but some flexibility was granted in March, allowing countries to aim for 80% this year to avoid panic buying and alleviate costs.
Pick the topics you care about. Get only what matters, on your cadence.