EU prepares to cut down gas demand ahead of cold winter months amid Russian disruption
The executive arm of the European Union (EU) will encourage member states to cut down the bloc’s gas demand ahead of winter by incentivising industries to use less energy.
According to a draft plan seen by Reuters, the European Commission’s plan will suggest countries launch financial benefits for companies to reduce gas use, alongside state aid to encourage industries and power plants to switch to other fuels.
It also calls for information campaigns to be rolled out to nudge consumers to use less heating and cooling.
Measures targeting industry could include auctions or tenders where large consumers would receive compensation for using less gas.
Governments are also expected to determine the order in which they would force industries to close in a supply emergency.
Households are “protected customers” under EU law, meaning they would be the last affected by gas rationing.
Nevertheless, countries could impose mandatory heating or cooling limits on other consumers, such as offices or shopping centres, if there was a severe gas shortage,
The plans are due to be published next week on July 20, and reflecting the growing concerns of supply shortages this winter amid fears Russia could halt supplies.
The Kremlin has curbed gas deliveries to 12 EU countries following the invasion of Ukraine, cutting some off completely over a payment dispute and affecting others by reducing flows through its Nord Stream 1 pipeline to Germany.
Currently, the pipeline is offline until July 21 for maintenance, amid worries the shutdown could be extended because of the war.
In a sign of potential political posturing, Kremlin-backed gas giant Gazprom revealed it could not guarantee the safe operation of a critical part of the Nord Stream 1 gas pipeline because of doubts over the return of a turbine from Canada.
Meanwhile, local authorities in Germany have begun rationing energy, dimming street lights and closing swimming pools to cope with soaring gas prices in the wake of Russia’s move to slash energy supplies.
The EU is aiming to push as much gas as possible into storage and build up a supply buffer for winter, when heating demand peaks. EU gas storage is currently 62 per cent full, which is far short of the bloc’s goal of 80 per cent capacity by November.