Brussels, 22/09/2010 (Agence Europe) - The European Parliament (EP), meeting in plenary session in Strasbourg on Tuesday 21 September, gave first reading approval, by 601 votes to 27, with 23 abstentions, to the draft regulation on the security of gas supply, which strengthens the current Community system based on directive 2004/67/EC. The new regulation seeks to remedy the lack of coordination and interconnection of energy infrastructure between member states in the event of cuts in supply. The broad thrust of the draft regulation amended by the EP, which has still to be approved by the Council before coming into force by the end of the year is:
Preventive action plans. Within two years of the text coming into force, member states will have to draft prevention plans. Member states will have to ensure that, even if their biggest source of gas or a large part of the network fails, the remaining network (N-1) is capable of meeting total daily gas demand on a day of “exceptionally high demand” (which, statistically, happens once every 20 years). They will have four years after the text comes into effect to comply with this supply standard, but cross-border interconnections among EU countries will have to be in place within three years. In addition to ensuring connection to the EU gas network, national authorities will, in some cases, have to install supply by flow inversion, and to limit dependence on one single third country. The Commission will draft a long-term supply strategy; one year after the text comes into force, it will assess the standard of LNG installations, storage capacities and the extend of regional cooperation, with a view to making recommendations on how to improve preventive action plans.
Emergency plans and triggering. If, despite these preventive measures, an emergency happens due to serious disruption or exceptionally high demand, and market mechanisms cannot cope, the member state concerned will activate a national emergency response plan. This plan will ensure that cross-border access to storage facilities and the flow of gas across borders are maintained. The EP has amended the threshold for triggering a “Union emergency” - the three main crisis levels are “early warning”, “alert” and “emergency” - and extended the areas in which the Commission can take action, for example, coming to the aid of regions that have been particularly badly affected. The Commission will declare an emergency at the request of at least two member states which have declared national emergencies, when the EU loses more than 20% of its daily gas imports from third countries or when a member state in a specific region of the EU declares an emergency or the region as a whole loses 10% of its daily gas imports from third countries. In an emergency, the Commission will ensure a smooth flow of information as well as coordinating national measures and any joint action with non-EU countries.
Single market and consumer protection. Member states will have to base their prevention plan on market mechanisms, while retaining non-market-based solutions as a last resort, when the plan alone cannot cope with a supply cut. Nevertheless, recipients of gas supply are, by definition, protected consumers. In its initial proposal, the Commission suggested that protected consumers include also SMEs, schools and hospitals. The EP proposes that this definition be left to member states, which will be free to include other kinds of protected consumers, but always in compliance with solidarity pledges towards other member states. Gas suppliers will be required to ensure supplies to householders in cases of extremely low temperatures during a seven-day peak period, during any period of at least 30 days of exceptionally high demand in the coldest winters.
Derogations. These arrangements will not apply to Malta or Cyprus, as long as they do not take gas supplies. Luxembourg and Slovenia, because of lack of gas and LNG storage facilities, and Sweden, where gas represents less than 5% of primary consumption, will not be required to meet infrastructure standards.
A major contribution to energy security. EP rapporteur Alejo Vidal Quadras (EPP, Spain) said the text was essential to improving security of supply. “If applied speedily and effectively, it will be a powerful message to our gas suppliers that Europe stands all for one and one for all in the crises,” he said. European Energy Commissioner Günther Oettinger hailed “a major step forward for ensuring that every household still has gas event in the event of a break in supply”. EP President Jerzy Buzek (EPP, Poland) said: “The EU will now be better protected against gas crises”. Buzek noted that the new text place “great responsibility” on the Commission which will have to ensure proper information exchange, coherence of national action plans and coordination with third countries. (E.H./transl.rt)