(Bloomberg) -- The European Union proposed that the bloc cut its natural gas consumption by 15% over the next eight months in a plan that would affect all households, power producers and industry.
The goal is embedded in regulation accompanying demand-reduction guidelines for governments amid growing concern that Russia will cut gas exports to the region after being hit with sanctions following its invasion of Ukraine. The measure put forward by the European Commission includes a mandatory trigger if the situation worsens and voluntary curbs are insufficient.
“The European Union faces the risk of further gas-supply cuts from Russia due to the Kremlin’s weaponization of gas exports, with almost half of our member states already affected by reduced deliveries,” the commission said Wednesday in a statement. “Taking action now can reduce both the risk and the costs for Europe in case of further or full disruption.”
The EU’s biggest challenge this winter is to ensure sufficient gas supplies to fuel furnaces and power generators. Russian President Vladimir Putin has signaled that Europe will start getting gas again through the key Nord Stream pipeline, but warned that unless a spat over sanctioned parts is resolved, flows will be tightly curbed.
Under its “Save gas for a safe winter” plan, the commission recommended steps that include reducing heating and cooling, switching to other fuels and market-based measures. Curtailments of Russian shipments have already affected 12 member states, and prompted Germany to raise its gas-risk alert to the second-highest level last month.
The commission is working under the assumption that Russia won’t resume full deliveries via Nord Stream, which has been closed since earlier this month for repairs, Budget Commissioner Johannes Hahn said on Tuesday. Putin said later that day that if a pipeline part caught up in sanctions isn’t returned to Russia, then the link will only work at 20% of capacity as soon as next week -- as that’s when another part that’s now in Russia needs to go for maintenance.
The commission’s plan goes in the right direction, according to Simone Tagliapietra, a researcher at the Bruegel think-tank in Brussels.
“EU member states must now adopt the proposed gas demand-reduction targets and make comprehensive efforts to reduce demand wherever possible,” he said. “Governments must ask people to consume less and should have the courage to tell their citizens that Europe is in the midst of what possibly represents the greatest energy crisis in its history.”
The proposed regulation would grant the commission the right to declare a union-wide alert when there’s substantial risk of a severe supply shortage or a demand spike, it said.
The measure will need approval from member states, which the EU’s executive arm may seek as soon as next week during an emergency meeting of energy ministers. A large group of countries opposes mandatory cuts, arguing that national governments already have emergency plans and will reduce demand regardless of whether they are obliged to by the EU, according to three diplomats familiar with the matter.