European Commission Proposes ‘Gas Saving Plan for a Safer Winter’

European Commission presented the ‘Gas Saving Plan for a Safe Winter’ on Wednesday, which anticipates a 15 percent reduction in gas consumption from August 1 of this year until March 31, 2023.

The European Union is facing the danger of further reductions in gas supplies from Russia, which the Kremlin is using as a weapon, and nearly half of the member states have already been affected by reduced gas deliveries from Russia. European Commission President Ursula von der Leyen stated that a ‘complete halt of Russian gas supplies is a likely scenario’.

– Russia is blackmailing us, using energy as a weapon. Therefore, we must be prepared for either a partial, somewhat larger, or complete interruption of supply – said von der Leyen.

Thus, the Commission emphasizes that action must be taken in a timely manner, taking steps now to significantly reduce the risk and cost for Europe in the event of further disruptions in gas supply.

The Commission estimates that a complete halt of Russian gas supplies to Europe combined with a cold winter could reduce average GDP by up to 1.5 percent if member states do not prepare in advance for all scenarios. A complete halt of supply combined with an average winter would reduce GDP by up to 1 percent.

The gas consumption reduction plan anticipates that on a voluntary basis, all consumers, households, public administration, owners of public buildings, energy producers, and industry take measures in this regard.

The Commission proposes a new regulation on coordinated gas demand reduction, which will set targets for all member states to reduce gas demand by 15 percent from August 1 of this year to March 31 of next year compared to the average consumption over the last five years in the same period.

The proposed regulation gives the Commission the ability to declare a Union-wide state of emergency after consultations with member states, thereby imposing mandatory gas consumption reductions for all member states. Such a state of emergency could be declared in the event of a significant risk of gas shortages or exceptionally high gas demand.

The Commission has also called on member states to launch a public campaign to raise awareness about the need to reduce heating and cooling. Member states could, for example, determine that public buildings are heated a few degrees lower or that cooling intensity is reduced during the summer months.

Member states need to update their national emergency plans by the end of September and show how they intend to achieve the consumption reduction targets, and they should report to the Commission every two months. Member states requesting gas delivery in solidarity will have to demonstrate what measures they have taken to reduce consumption.

The Commission’s plan anticipates that protected consumers such as households, hospitals, or industries producing essential products or services for the economy will remain protected. The emphasis is on substituting gas with other fuels and on savings across all sectors.

Substituting gas with other fuels should be wherever possible among renewable energy sources, but coal, oil, or nuclear energy is not excluded as a temporary substitute.

For the proposed regulation to come into effect, it must receive a qualified majority of member states. The first discussion on the proposal will be next Monday at an extraordinary meeting of the EU member states’ energy ministers.

Following the onset of Russian aggression against Ukraine, the EU has significantly increased gas imports from Norway, Azerbaijan, and Algeria, and has tripled imports of liquefied gas from the United States, but this is still not enough to compensate for imports from Russia.

The Commission estimates that the EU can reduce gas consumption by about 45 billion cubic meters, just under a third of the amount imported from Russia in 2020. Just from reducing heating and cooling of buildings by a few degrees, around 11 billion cubic meters of gas could be saved, the Commission states.