Page 4 - FSUOGM Week 29 2022

FSUOGM COMMENTARY FSUOGM

Brussels urges 15% cut in gas use

to conserve for winter

Brussels wants to see the entire economy to participate in the reductions in use

EUROPE THE European Commission called on member Commission is only urging voluntary action on
states on July 20 to slash their gas consumption gas consumption, as part of its Save Gas for a Safe
WHAT: by 15% from August 1, in order to safeguard Winter plan presented in Brussels. The goal is to
The EU wants member against the threat of a total cut-off in gas deliv- ensure that there remains enough gas supply for
states to cut their gas use eries from Russia. households and essential users such as hospitals
by 15% from August 1. Fears are mounting that the EU will not have and key industries. But it wants to see all energy
enough gas in stock for the winter. The European users, including citizens, think about how much
WHY: Commission mandated in June that member gas they are using.
Brussels fears in a cut-off states should fill their gas storage facilities to at While some member states are more vulner-
in Russian gas supply. least 80% of capacity by October 1. And while able to a disruption in Russian gas than others,
the bloc so far seems on track to meet this target, Commission President Ursula von der Leyen
WHAT NEXT: the task of replenishing stocks has become much stressed that there would be knock-on effects for
The European more difficult in light of recent steep cutbacks in the entire continent. The bloc therefore needs
Commission wants Russian supply, which have caused prices to soar to act together to counter the threat that Russia
powers to mandate even higher and led several member states to poses.
gas cuts by member turn coal-fired power plants back online to save “It’s important that all member states con-
states in the event of an on gas. Gas Infrastructure Europe estimates that tribute in the saving, the strong and are ready to
emergency. EU storage facilities were at close to 65% capacity share gas,” she said in an address.
as of July 18. Under the proposal, member states will
This fear is shared by the International have to submit national energy plans to the
Energy Agency (IEA), which stressed on July 18 Commission by the end of September, and
that Europe should be prepared for a “long, hard provide updates every two months. Countries
winter,” by cutting gas consumption as much as requesting gas from their neighbours under
possible. Meanwhile, the IMF has warned that the EU’s solidarity principle in its energy leg-
European countries most reliant on Russian gas islation must first demonstrate that they have
could see their economies contract by up to 6% undertaken measures to reduce their own con-
in the event of a full cut-off in those supplies. sumption. The proposed legislation would also
For the time being, the European grant the Commission the authority to declare

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