The European Commission has informed member states that they must reduce demand for gas and electricity to control prices during the global energy crisis. Dan Jørgensen, the European Commissioner for Energy and Housing, emphasized in a letter to EU ministers dated September 25 that reducing demand can be an effective tool for curbing prices.
The current state of gas reserves in Europe
In this letter, Jørgensen invited ministers to take necessary actions to reduce demand. He noted that despite existing challenges, "there is currently no immediate risk to energy supply security." However, gas reserves in Europe are currently at their lowest historical levels, and the war in Iran has disrupted global gas flows, which could lead to an expensive winter for the European continent.
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Gas storage targets and measures taken
Gas reserves in Europe have now reached 68% of their capacity, significantly lower than 71% at the same time in 2021. This was before the onset of the historic energy crisis caused by the COVID-19 pandemic and the start of the war in Ukraine. The European Union has set a target to reach 90% gas reserves by early November, but in March some flexibility was granted to member states to achieve the 80% target and avoid panic buying and reduce costs.
Jørgensen emphasized in his letter that the measures taken by EU countries to regulate prices should be "well-targeted" and "temporary" to prevent increased demand. Given the current state of the energy market, these measures could help alleviate pressure on households and businesses.
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