Page 13 - FSUOGM Week 30 2022

FSUOGM POLICY FSUOGM

EU clinches deal on 15% cut in gas

consumption from next month

EUROPE EU member states have agreed to back the grids can be exempt from any mandatory cuts.
European Commission’s proposal to imple- This is a response to criticism from Cyprus, an
Concessions have ment a 15% cut in gas consumption starting island with no gas link to the mainland, and
been made to member next month, but the agreement includes some Spain and Portugal, which have argued that
states that voiced concessions to those countries that had voiced they are essentially an “energy island” because of
their opposition to the opposition to the measure. their limited capacity to send gas to France and
proposal. The deal was hashed out following a meet- onwards.
ing of EU energy ministers in Brussels on July What is more, member states can also secure
26, and is aimed at ensuring that the bloc has a waiver from mandatory action if they have
enough gas to last through the winter in the overshot their gas storage targets. Poland, for
event that Russia cuts off supply completely. A example, has filled its storage facilities to close
day earlier Gazprom announced it would be to 99% of capacity – far above the EU average of
making a further reduction in gas deliveries via 66.7% – and has expressed reluctance to share
the Nord Stream 1 pipeline to just 20% of its these reserves with other member states less pre-
capacity, ostensibly because of the need to shut pared for winter. Member states can also avoid
down a Siemens turbine because of its tech- mandatory cuts if they are heavily dependent
nical conditions. But European leaders have on gas as a feedstock for critical industries, or if
dismissed the move as politically motivated, as their gas consumption has risen by at least 8%
Gazprom could, if it wanted to, divert volumes in the past year versus the average for the past
to other transport routes such as Ukraine. five years.
The European Council, comprising the “Today’s decision has clearly shown the
leaders of all member states, the council’s pres- member states will stand tall against any Rus-
ident and the president of the European Com- sian attempt to divide the EU by using energy
mission, announced on July 26 that a political supplies as a weapon,” Czech Industry Minister
agreement had been reached to implement the Jozef Sikela commented in a statement. “Adopt-
voluntary reduction in gas use. This reduction ing the gas reduction proposal in record time has
will become mandatory in the event that a state undoubtedly strengthened our common energy
of emergency, referred to as a “Union alert”, is security. Saving gas now will improve prepared-
triggered if the risk of gas shortages becomes ness. The winter will be much cheaper and easier
acute. for the EU’s citizens and industry.”
Under the deal, member states will imple- German Economy Minister Robert Habeck
ment the cut between August 1, 2022 and March likewise said the agreement would show Russian
31, 2023, using average consumption over the President Vladimir Putin that Europe remained
last five years as a baseline. They will be able united, despite recent curtailments in gas supply.
to use measures of their choice, and while EU “You will not split us,” he said.
countries have committed to do their best to According to Reuters, the only country to
meet the target, the agreement also covers cer- oppose the deal was Hungary, which declared its
tain exemptions. own state of energy emergency last week, intro-
Notably, those member states that have no ducing the rationing of power and gas supplies,
or only limited interconnection with others’ gas including to households. ™

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