European Commission urges EU states to cut gas and electricity demand

The European Commission has appealed to the capitals of EU member states to lower demand for gas and electricity in order to restrain price growth driven by the global energy crisis. The call was set out in a letter sent on September 25 by EU Energy and Housing Commissioner Dan Jørgensen, according to Yevropeiska Pravda, citing Politico.

In the letter, the commissioner noted that against a backdrop of limited global supply and high price volatility, cutting demand could serve as an effective tool for keeping prices in check. He urged national ministers responsible for energy to take steps to reduce gas and electricity consumption for as long as necessary, while stressing that there are currently no immediate risks to supply security, even though the overall situation remains difficult.

Gas reserves at historic lows

Europe's gas reserves are currently at a historically low level, as the war in Iran is disrupting global gas supplies. Storage facilities are presently filled to 68% of capacity, notably below the 71% recorded during the same period in 2021 — just before the historic energy crisis triggered by the Covid-19 pandemic and the start of the full-scale war in Ukraine.

The EU's baseline target is to fill gas storage to 90% of capacity by early November, though in March some flexibility was introduced, allowing countries this year to aim for 80% instead, in order to avoid panic buying and reduce costs.

Jørgensen's letter states that any measures EU countries adopt to regulate prices should be "targeted" and "temporary" so as to avoid triggering a spike in demand.