EU ministers today trying to negotiate a 15% gas cut with exceptions

EU ministers today trying to negotiate a 15% gas cut with exceptions

European Union (EU) energy ministers will try Tuesday to reach consensus on a goal to cut gas consumption by 15% by spring, following new exemptions relating to the “geographical or physical location” of countries.

Days after the European Commission proposed an EU target to reduce gas consumption by 15% between August and April 2023, fearing disruptions to gas supplies from Russia to Europe this winter, responsible ministers will discuss in Brussels coordinated measures to reduce demand after initial opposition from countries such as Portugal and Spain, namely due to the lack of energy interconnection with the rest of Europe.

The document now on the table already contains changes to the Community Executive’s proposal and, according to the version discussed on Monday by Ambassadors to the EU at the preparatory meeting of this Energy Council, it is now envisaged that some countries may “be able to request a derogation from the obligation on Mandatory Demand Reduction” in an emergency scenario.

The proposal, to which Lusa had access, indicates that such a derogation applies to “certain Member States due to their special geographical or physical situation”, for example, those heavily dependent on the production of electricity from gas, lack of synchronization with European electricity grid or no direct gas connection.

It is conceded that these countries may not be able to “release significant volumes of gas from the pipeline to other Member States” when the initiative provides for solidarity and the sharing of emergency reserves.

Another change from the original version is that five member states (instead of three) can ask the community executive to issue a “union warning,” according to a proposal consulted by Lusa.

On Wednesday, the European Commission proposed a goal to cut EU gas consumption by 15% by spring, acknowledging that it would begin mandatory demand reductions in an emergency.

The goal is for Member States to reduce their natural gas consumption by 15% between August 1 this year and March 31, 2023 (compared to the historical average for this period, taking into account the period from 2017 to 2021), in order to increase the European level of storage and create an airbag in case of emergency situations.

It is envisaged that the European Commission will be able to issue, after consultation or request from Member States, a “Union Warning” on the security of supply, imposing a mandatory reduction in gas demand for all countries, which will make the 15% target cease to be voluntary to become mandatory.

This can only happen when there is a significant risk of severe gas shortages or exceptionally high demand for gas.

So far, Portugal, Spain, Greece, Poland, and France have expressed their opposition to the 15% target.

Geopolitical tensions over the war in Ukraine have affected the European energy market, as the EU imports 90% of the gas it consumes and Russia accounts for about 45% of those imports, at varying levels between member states.

In Portugal, Russian gas accounted for less than 10% of total imports in 2021.

Author: Lusa

Source: CM Jornal

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