Will European States Scale Down Gas Consumption?

  • European Commission has proposed a European Gas Demand Reduction Plan
  • European Union faces the risk of further gas supply cuts from Russia, with nearly half of its Member States already experiencing reduced deliveries
  • The new Regulation would require all Member States to reduce gas demand by 15% between August 1, 2022 and March 31, 2023.

The European Commission has proposed a European Gas Demand Reduction Plan, which would reduce gas consumption in Europe by 15% until next spring. All consumers, public administrations, households, owners of public buildings, power suppliers, and industry will be encouraged to take gas-saving measures under the plan. The Commission will also speed up work on supply diversification, such as joint gas purchases, to strengthen the EU’s ability to source alternative gas deliveries.

Due to the Kremlin’s weaponization of gas exports, the European Union faces the risk of further gas supply cuts from Russia, with nearly half of its Member States already experiencing reduced deliveries.

Based on Article 122 of the Treaty on the Functioning of the European Union, the Commission has proposed a new Council Regulation on Coordinated Demand Reduction Measures for Gas. The new Regulation would require all Member States to reduce gas demand by 15% between August 1, 2022 and March 31, 2023. The new Regulation would also allow the Commission to declare a “Union Alert” on supply security after consulting with Member States, imposing mandatory gas demand reductions on all Member States. The Union Alert can be activated when there is a significant risk of a severe gas shortage or an unusually high gas demand.

Earlier Gazprom has halted Gas supplies to some member states and EU states are witnessing heightened inflation, impacting households and corporation. It remains to be seen, how will state adopt the proposal. EU member states are primarily responsible for their own energy policies. Before the emergency plan proposal could be implemented, member states would need to approve it.

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