EU proposes mandatory national gas cuts

: Coal, Natural gas
22/07/20

Industries in the EU could face mandatory gas consumption cuts if member states agree to a proposal by the European Commission.

The proposed legislation sets targets for all EU states to voluntarily reduce gas consumption by 45bn m³ — or 15pc — in August 2022-March 2023. The 15pc reduction is compared with countries' average consumption between 1 August and 31 March during the past five years. But the commission could, after "consulting" with countries, trigger an EU alert that would impose mandatory gas demand reductions.

Under the proposal, EU countries must update national emergency plans by the end of September. Member states would have to report back to the commission every two months, and would have to show that national measures are reducing domestic demand.

Commission executive vice president Frans Timmermans underlined that households remain protected, with voluntary cuts for other sectors and an emergency legal option for mandatory cuts at a later date if needed following a full cut-off by Russian state-controlled Gazprom.

Commission president Ursula von der Leyen called on member states to approve the emergency provision, which she said would give officials powers to propose "measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products, notably in the area of energy".

The EU needs to respond to Russian "blackmail" and the "likely scenario" of a full cut in Russian gas deliveries by securing other "trustworthy" supplies and acting "in unity" to cut demand, von der Leyen said.

EU member states normally have to approve measures under a qualified majority procedure, whereby no single European country can veto or unduly delay adoption — as Hungary did over further sanctions against Russia. EU measures aim to act in the common interest of Europe, "in a spirit of solidarity" between member states, but may face opposition from countries pursuing national interests.

Hungary has emergency measures that restrict energy exports to other EU countries. And Hungarian foreign minister Peter Szijjarto has confirmed negotiations with Gazprom to increase deliveries to Hungary through Serbia.

The commission also noted possible exemptions to pollutant and CO2 emissions rules to help power plants and refiners switch away from Russian fossil fuels. Without a full cut of Russian supplies and sufficient measures by EU countries, the commission's plan would constitute guidelines for EU states to further reduce gas demand without binding rules.

By Dafydd ab Iago

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Funding cuts could delay US river lock work: Correction

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Funding cuts could delay US river lock work: Correction

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Bio-LNG could boom by early 2030s under IMO deal

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Bio-LNG could boom by early 2030s under IMO deal

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Shale patch on edge after tariff drama

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