July 20, 2022
The European Union is facing the risk of further gas supply cuts from Russia. The Commission is therefore proposing a new legislative instrument and a European Gas Demand Reduction Plan to reduce gas use in Europe by 15% by next spring. The Commission will also accelerate work on supply diversification, including joint gas purchases to strengthen the EU's ability to source alternative gas supplies.
Accordingly, the new Regulation would set a target for all Member States to reduce gas demand by 15% between August 1, 2022 and March 31, 2023. The new Regulation would also give the Commission the possibility to declare, after consultation with Member States, a "Union alert" on security of supply, imposing a mandatory reduction in gas demand on all Member States. The Union alert can be activated when there is a significant risk of a serious gas shortage or exceptionally high gas demand. Member States will have to update their national emergency plans by the end of September to show how they intend to meet the reduction target, and will have to report to the Commission on progress every two months. Member States requesting solidarity gas supplies will have to demonstrate the measures they have taken to reduce demand at national level.
To help Member States make the necessary demand reductions, the Commission has also adopted a European Gas Demand Reduction Plan that sets out measures, principles and criteria for coordinated demand reduction. The Plan focuses on the substitution of gas by other fuels and on overall energy savings in all sectors. It aims to safeguard supplies to households and essential users, such as hospitals, but also to industries that are critical to the supply of products and services essential to the economy, and to the EU's supply chains and competitiveness. The Plan provides guidelines for Member States to take into account when planning the reduction.
Where possible, priority should be given to switching to renewables or to cleaner, less carbon-intensive or less polluting options. However, switching to coal, oil or nuclear power may be necessary as a temporary measure, provided that carbon lock-in is avoided in the long term.
Another important pillar of energy savings is the reduction of heating and cooling. The Commission urges all Member States to launch public awareness campaigns to promote the reduction of heating and cooling on a large scale, and to implement the EU "Energy Saving Communication", which contains numerous short-term savings options. To set an example, Member States could mandate a targeted reduction of heating and cooling in buildings managed by public authorities.
The Demand Reduction Plan will also assist Member States in identifying and prioritizing, within their "unprotected" consumer groups, the most critical customers or facilities, based on general economic considerations and the following criteria:
- Social criticality - sectors including health, food, security, refineries and defense, as well as the provision of environmental services;
- Cross-border supply chains - sectors or industries that provide goods and services critical to the smooth functioning of EU supply chains;
- Damage to facilities - to prevent them from being unable to resume production without significant delays, repairs, regulatory approvals and costs;
- Gas reduction and product/component substitution possibilities - the extent to which industries can switch to imported components/products and the extent to which demand for products or components can be met by imports.
