The EU is expected to propose a voluntary 15% reduction in natural gas use

LAST UPDATE: 22.46

The European Union is set to propose a voluntary 15% cut in gas use by member states starting next month, amid concerns that Russia may cut off supplies, Bloomberg reported.

The target will be included in a regulation to accompany the demand reduction plan scheduled to be presented on Wednesday by the Commission to deal with a possible complete shutdown by Moscow. The measure would also include mandatory action if the situation worsens and voluntary restrictions are not enough, according to the agency citing three EU diplomats with knowledge of the matter.

As part of the “Saving natural gas for a safe winter” plan, the Commission plans to propose measures that include reductions in heating and cooling, as well as market measures. According to a Commission plan reviewed by Bloomberg, in the event of a cold winter, the EU risks a reduction in GDP of up to 1.5%.

The Commission is working on the assumption that Russia will not resume full deliveries through the Nord Stream 1 pipeline, which has been closed since the beginning of the month for maintenance work, Commissioner Johannes Hahn said on Tuesday. The pipeline was operating at about 40% capacity before repairs began. However, later today, Reuters reported – citing sources – that the pipeline is expected to resume flows in time from Thursday.

Cuts to Russian flows have affected 12 member states and prompted Germany to raise its gas risk alert to the second-highest level last month. Total flows from Russia in June were less than 30% of the 2016-2021 average, according to the Commission’s draft.

“The EU is now in a vulnerable gas supply situation. The time has come for the EU to anticipate the risks and act proactively in terms of preparedness for the security of natural gas supplies,” the Commission’s draft reads.

According to the diplomats, who spoke on condition of anonymity, the planned regulation would give the Commission the right to sound an EU-wide alert when there is a significant risk of a severe supply shortage or peak in demand.

The measure will need approval from the member states, which the Commission can request as early as next week during an extraordinary meeting of energy ministers. A large group of countries oppose mandatory cuts, arguing that governments already have contingency plans and will reduce demand regardless of whether they are forced to by the EU, diplomats said.