🇪🇺 EU Commission calls on countries to cut energy demands as costs surge

The European Commission has told capitals to reduce demand for gas and electricity in a bid to tame prices amid a global energy crunch.

"In the context of constrained global supply and high price volatility, demand reduction can be an effective tool to contain prices," EU Commissioner for Energy and Housing Dan Jørgensen wrote in a letter to EU ministers, dated Sept. 25 and seen by POLITICO.

In the letter, Jørgensen invites ministers to take measures to reduce demand for gas and electricity "for as long as necessary." He argues that while the situation is "challenging", there are "currently no immediate risks to security of supply."

Gas storage levels in Europe are currently at historic lows as the war in Iran disrupts global gas flows, which could set up the continent for an expensive winter.

Storage levels currently sit at 68% of capacity, which is well below the 71% measured at the same period in 2021 — just before the start of a historic energy crisis in the wake of Covid-19 and the start of the war in Ukraine.

The EU has a baseline target to have gas storage filled to 90% by the start of November, but some flexibility was granted on this in March, allowing countries to aim for 80% this year to avoid panic buying and alleviate costs.

🔗 https://www.politico.eu/article/eu-commission-calls-for-gas-electricity-demand-cuts/