The European Union’s efforts to reduce gas demand in order to avoid shortages this winter following cuts in Russian supplies have been uncoordinated and remain insufficient, says the Bruegel think-tank in a report published on Tuesday 6 September.
In particular, the organisation deplores the “multiple concessions” made in the new EU regulation calling for a 15% reduction in gas demand between the 1st of August 2022 and 31 March 2023 (see EUROPE 13000/1), “which means that many Member States will in reality not have to comply”.
According to Bruegel, the reduction in demand “should be coordinated and distributed broadly across the different consumer groups in EU countries”.
In particular, the report recommends that governments: - raise awareness of energy saving behaviour and the quick investments that households can make; - financially compensate for energy reductions in households and industry; - introduce rules to limit inefficient consumption.
The need for better coordination between Member States also relates to gas storage and increasing supply, the paper says.
On the storage side, Bruegel is concerned that stored gas will not be transported in time to where it is most needed during the winter in the event of further serious disruptions to gas supplies.
On the issue of increasing energy supply or switching from gas to other fuels in the short term, the organisation points out that Member States are unwilling to put some of their options on the European market, “because much of the benefit would be shared with other countries, while the sometimes substantial costs would not”.
The report therefore calls on the EU to follow four main principles: (1) all countries bring forward all available supply-side flexibilities; (2) all countries make comprehensive efforts to reduce demand; (3) political commitment to maintain energy markets and cross-border flows; (4) compensation for the most vulnerable consumers.
To see the report: https://aeur.eu/f/2y9 (Original version in French by Damien Genicot)