Short-term Intervention: Reducing/Capping Gas Consumption
Under the “EU Save Energy Communication” published by the Commission on May 18, 2022[1], short-term behavioural changes are to be pursued to cut gas and oil demand by 5%. Member States are to start communication campaigns targeting households and industry to reduce usage.
The Commission also encourages Member States to use fiscal measures to foster energy savings, such as reduced VAT rates on energy efficient heating systems, building insulation and appliances and products. The communication also sets out contingency measures in case of severe supply disruption, and the Commission is expected to issue further guidance on prioritization criteria for customers and facilitate a coordinated EU demand reduction plan.
Regulation on coordinated demand-reduction measures for gas, 2022/1369 of 5 August 2022
To increase the security of energy supply, the EU adopted a regulation to reduce gas demand voluntarily by 15% between August 2022 and March 2023[2]. In the case of a severe gas supply disruption, the regulation foresees the possibility for the Council to make the gas demand reduction compulsory by declaring a “Union alert” on the security of supply. The regulation was adopted under Article 122 TFEU.
Statement on Energy by President von der Leyen issued on September 7th, 2022:
“What has changed over the summer, because of the elements I was just mentioning, is that we see that there is a global scarcity of energy. So whatever we do, one thing is for sure: We have to save electricity, but we have to save it in a smart way. If you look at the costs of electricity, there are peak demands. And this is what is expensive, because, in these peak demands, the expensive gas comes into the market. So what we have to do is to flatten the curve and avoid the peak demands. We will propose a mandatory target for reducing electricity use at peak hours. And we will work very closely with the Member States to achieve this”.
Links to EU Regulations/Statements and News Stories on Accelerating the EU’s Green Transition
April 2023:
December 2022:
- Council agrees on temporary mechanism to limit excessive gas prices
- G7 agrees oil price cap: reducing Russia’s revenues, while keeping global energy markets stable
November 2022:
October 2022:
- Energy saving options for SMEs to better cope with the crisis
- In focus: Energy efficiency – a driver for lower energy bills
September 2022:
August 2022:
- Europe struggles to find consistent approach to cutting energy consumption
- Council adopts regulation on reducing gas demand by 15% this winter
- Council Regulation (EU) 2022/1369 of 5 August 2022 on coordinated demand-reduction measures for gas
- Energy savings: How EU governments plan to cut their consumption
July 2022:
- A first look at ‘Save gas for a safe winter’: The EU’s fast-tracked proposal for protecting against a disconnection from Russian gas (EUI – Florence School of Regulation)
- Member states commit to reducing gas demand by 15% next winter
- Save Gas for a Safe Winter: Commission proposes gas demand reduction plan to prepare EU for supply cuts
May 2022:
April 2022:
Italy
September 2022:
April 2022:
France
October 2022:
- France unveils ‘ambitious’ energy efficiency plan, with no binding measures
- Factbox: France’s action plan to cut energy consumption
- France Unveils Sweeping Energy Savings Plan to Avoid Shortages
- France launches energy savings push to avoid winter power cuts
- France launches “sobriety” energy savings drive to avoid winter power cuts
September 2022:
July 2022:
[1] See Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, EU “save energy”, May 18, 2022, COM/2022/240 final, available here.
[2] Council Regulation (EU) 2022/1369 of 5 August 2022 on coordinated demand-reduction measures for gas, OJ L 206, 8.8.2022, p. 1–10.