The Ministers of Energy of the European Union (EU), meeting this Tuesday in an extraordinary Council, closed a political agreement to reduce gas consumption in the face of the threat of an energy crisis fueled by Russian gas cuts.
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After an initial cold reception from the majority of delegations, the members of the EU approved this Tuesday a plan, proposed on July 20 by the European Commission (EC), which aims to reduce gas demand by 15% but which contemplates derogations to respond to the situation in each country.
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Initially, the reduction in gas demand had raised misgivings in several member countries – including Poland, Spain, Italy, Greece and Portugal – who criticized the fact that it did not take into account the specificities of each one. For this reason, the content was extensively modified, although its main lines remained the same after the negotiation.
Of the 27 member states, Hungary was the only country to vote against the plan, which the Hungarian chancellor called “inapplicable and harmful”.
Member States agreed in particular to reduce gas demand by 15% between August 1, 2022 and March 31, 2023 –compared to its average consumption of the last five years – voluntarily first and, in the event that the state of alert is declared in the EU, such as if there is a total cut of the Russian supply, on a mandatory basis.
Faced with the initial proposal from Brussels, which proposed a cut of 15% equally for all, possible derogations were allowed in certain cases.
In the case of the countries that are islands (Malta, Cyprus and Ireland), the Council decided that exceptions will apply automatically.
Member States whose electricity networks are not synchronized with the European electricity system and rely heavily on gas for electricity production (the Baltic countries) will also be able to request an exemption, in order to avoid the risk of an electricity supply crisis.
Countries that have “limited interconnections” with others (such as Spain and Portugal) and can demonstrate that they are making full use of their interconnector export capabilities or their national liquefied natural gas structure to redirect gas to others, will be able to apply for an exception.
In order to benefit from this derogation, which can lead them to reduce their gas savings from the initial 15% to 7%, they will have to show that they are doing what they can to jointly meet the demand of other Member States.
The circumstances in which their interconnections and their national market find themselves will be taken into account, and it will be guaranteed that they do not close their borders to retain the gas: they must demonstrate that they meet the demand, that they make good use of their export capacity and its liquefied natural gas terminals to offer it to others, community sources indicated.
Finally, they will be able to ask for exceptions if they have exceeded their gas storage fill-up targets, rely heavily on gas as a feedstock for critical industries, or if their gas consumption has increased by at least 8% in the past year compared to with the average of the last five years.
It was also decided to give countries a greater role in activating the “alert” situation when there is a serious risk of gas shortages or exceptionally high gas demand.
In this way, it can be activated both at the proposal of the Commission and of five or more Member States.
Furthermore, when choosing demand reduction measures, Member States agreed to give priority to measures that do not affect protected customers, such as households and services essential to the functioning of society, such as critical entities, medical care and defense.
reactions
On Monday, Russia’s state-owned company Gazprom announced it will reduce gas supplies to Europe via the Nord Stream pipeline to 33 million cubic meters a day from Wednesday. This figure represents around 20% of the pipeline’s capacity.
And until last year, about 40% of EU gas imports came from Russia.
That’s why, the energy saving plan aims to join efforts in case of emergency to help, above all, Germany, which is highly dependent on Russian gas and whose industry is closely linked to those of the EU.
“The decision has clearly shown that member states will stand firm against any Russian attempt to divide the EU by using energy supplies as a weapon,” Czech Industry and Trade Minister Jozef Síkela said.
“This collective commitment is very significant and will help us replenish stocks before winter,” EC President Ursula von der Leyen celebrated on Tuesday.
“Today’s (Tuesday) decision has clearly shown that Member States will stand firm against any Russian attempt to divide the EU using energy supplies as a weapon,” Czech Industry and Trade Minister Jozef Síkela, whose country is chairing the EU Council this semester, said at the end of the meeting.
The Third Vice President and Minister for the Ecological Transition of Spain, Teresa Ribera, considered the agreement reached “important” “because of the message that is being conveyed abroad: we do not accept the blackmail of (Russian President, Vladimir) Putin”, as she pointed out in a press conference after the Council.
Ribera indicated that for the agreement to be effective “it needs to be able to incorporate in a flexible way the way in which each one of us can contribute to supporting our neighbors.”
Robert Habeck, Minister of Energy of Germany, the country that is most exposed to a Russian supply cut, valued in the public debate held in the Council that “in five days” an agreement has been reached that “sends a strong signal” and makes the EU ready “to help in solidarity”.
The German minister denounced the “clear strategy of the Kremlin” to “break solidarity in the EU and with Ukraine” and even criticized the Russian gas giant Gazprom, which “does not seem to dominate its own decisions”.
“The Canadian turbine hoax says it all,” he said of a component of the Nord Stream 1 pipeline that had been blocked in Canada.
The regulation agreed on Tuesday is an extraordinary measure. The Commission will carry out a review in May 2023 to consider its extension based on the supply of gas in the European territory.
*With information from AFP and EFE
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