The European Commission is preparing to set up a Task Force to take over the common gas market at EU level, in line with its proposals today for securing the EU’s energy supply and combating rising energy prices.
“Global and European energy markets are going through turbulent times, especially after the Russian invasion of Ukraine. Europe must take swift action to secure energy supply for next winter and alleviate the pressure of high energy bills on citizens and businesses. “Today’s proposals are another step forward in our intensive work on this front,” said Energy Commissioner Candy Simpson.
In particular, the Commission announced that it was ready to set up a Task Force on common gas markets at EU level, inspired by the experience of the COVID-19 pandemic, where action across the EU was vital to ensuring adequate supplies. vaccines for everyone. “By concentrating demand, the Task Force will facilitate and strengthen the EU’s international approach to suppliers to help ensure good imports for next winter,” the Commission said. The Task Force will be composed of representatives of the Member States on a Management Board. A joint Commission-led negotiating team will hold talks with gas suppliers and prepare the ground for future energy partnerships with key suppliers, looking beyond LNG and gas. The Commission is already in talks with the main gas producing countries (USA, Norway, Qatar, Algeria).
In addition, the Commission has accelerated its work since the Versailles Summit and is currently tabling a legislative proposal that requires Member States to ensure that underground gas storage is filled to at least 80% of capacity by 1 November 2022, increasing at 90% for the coming years. Intermediate occupancy targets are set for February to October. Storage operators should report filling levels to national authorities. Member States should monitor filling levels on a monthly basis and report to the Commission.
A new mandatory certification of all storage system operators is also envisaged, to avoid potential risks arising from external influences on critical storage infrastructure, which means that uncertified operators will have to abandon ownership or control of storage facilities. In addition, in order to close a gas storage facility, it must be authorized by the national regulatory authority. To give incentives to replenish EU gas storage facilities, the Commission is proposing a 100% discount on capacity-based transport tariffs at storage entry and exit points.
With regard to emergency measures to mitigate rising electricity prices, the Commission emphasizes that there is no single easy answer to tackling high electricity prices, given the diversity of situations between Member States in terms of their energy mix, market design and interconnection levels. The Commission presents the advantages and disadvantages of the different approaches for further consideration by European leaders and is ready to advance its work as appropriate. The Commission also emphasizes the importance of tackling the root causes of today’s high electricity prices through collective European action in the gas market.
The Commission will present its detailed “REPowerEU” plan and evaluate options for optimizing electricity market planning in May. It will also propose an EU energy saving plan.
The Commission’s current proposals will have to be approved by the EU Council and the European Parliament.
Source: Capital
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