In a new report on the security of gas supply, published on 24 June, the European Court of Auditors assesses the measures taken by the European Union to deal with soaring prices following Russia’s invasion of Ukraine in 2022. And it warns that the EU still faces major challenges in securing its long-term gas supplies.
Despite the adoption of emergency measures to counter Russia’s use of gas as a weapon, the Court considers that the benefits of these actions remain uncertain and often cannot be demonstrated.
The EU also faces new challenges, such as increased dependence on liquefied natural gas (LNG) imports and the need to decarbonise gas consumption.
“Given its dependence on foreign gas, the EU can never let its guard down on the security of its supply, and there is no guarantee of affordable prices for consumers in the event of a major shortage,” said João Leão, the member of the Court responsible for the report.
Thanks to the diversification of its imports, the EU has managed to stabilise wholesale gas prices from the end of 2023, with prices returning to pre-war levels by the beginning of 2024. It has also achieved its targets of reducing gas demand by 15% and filling its tanks to 90% (see EUROPE 13284/10).
However, the Court of Auditors was unable to determine whether these results were due to the measures taken or to external factors, such as a mild winter and high gas prices. The effectiveness of the gas price capping could not be assessed either, as prices remained well below the limit set at €180 per megawatt-hour (MWh).
The same applies to the effectiveness of the AggregateEU joint gas purchasing platform (see EUROPE 13360/21), given that the differences in gas prices between Member States, caused by the crisis, had already fallen considerably by the time the platform came into operation.
The report highlights the need for a consolidated framework to promote access to gas at affordable prices, but also warns of a lack of solidarity between Member States, with some even considering cutting off their gas supply to a neighbouring country in an emergency.
According to the auditors, considerable progress is also needed in carbon capture, utilisation and storage (CCUS) to meet climate targets, given that current CCUS projects capture only a fraction of the required levels of CO2.
Lastly, the report calls for the process of communication of information by Member States on the security of gas supply to be optimised and for the structure of regional cooperation to be reviewed, as well as for the implementation of gas infrastructure projects of common interest (PCIs) to be made more transparent (see EUROPE 13387/10).
To view the European Court of Auditors’ report: https://aeur.eu/f/csp (Original version in French by Pauline Denys)