EU Energy Ministers Explore 15% Gas Reduction With Country-Specific Exemptions

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The European Union’s energy ministers are scheduled to gather this week to review the proposal put forward by the European Commission. The plan calls for voluntary gas usage reductions of 15 percent, with the possibility of specific exemptions for individual member states based on national circumstances as discussions unfold. Spain, Portugal, and Greece have expressed reservations about the plan.

Officials managing the energy portfolio will revisit the Community Manager’s proposal from the previous week. The goal remains a voluntary 15 percent cut in gas consumption by the end of March, a target Brussels could enforce if a security of supply warning is triggered.

In principle, the Energy Council is prepared to consider a 15 percent reduction target while allowing carve-outs for certain states facing unique conditions. These include island connectivity limitations such as Malta, grid synchronization challenges in the Baltic states, and variations in gas storage capacity among member states.

Diplomatic sources indicate the objective is not to dilute the 15 percent target but to account for the specific geographic and interconnection constraints of individual countries. Reducing the target in some nations does not imply the need for compensation by others.

Last week, Theresa Rivera, the third vice president and minister for the Ecological Transition and Demographic Challenge in Brussels, stated that the proposal does not have her backing. She described the gas consumption cut as a disproportionate sacrifice and noted that Spain does not live beyond its energy means compared with others.

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a) Spain will discuss gas connections with France, noting that underground gas storage levels surpass the EU average and that LNG storage accounts for about a third of the EU’s regasification capacity.

a rejection that Spain shares with Portugal, Poland, Greece, and Hungary, while France has indicated support. Within this framework, the European Commission’s regulation must secure a qualified majority in the Council to advance, requiring the support of 15 member states representing at least 65 percent of the EU population.

In a subsequent step, the Twenty-Seven will exchange views on the matter. The Commission could declare a European alarm with a qualified majority, following last week’s communiqué. The council majority threshold involves 15 EU countries or an initiative by at least five member states, amounting to twenty-seven in total.

Energy ministers will also examine how to strengthen protections for vulnerable consumers and how to ensure energy security and solidarity across member states, including housing, health facilities, education centers, and security hubs.

Following Greece’s proposal, energy ministers will consider setting wholesale gas price limits within the electricity market and pursuing reforms of the electricity market.

Ukraine is ready at the meeting

Ukrainian Energy Minister German Galushchenko will attend the meeting in person to discuss how energy security can be reinforced in both electricity and gas markets in Ukraine.

Last week, Brussels urged EU member states to voluntarily cut gas consumption by 15 percent from August 1 through March 31 to achieve a targeted reduction of 45,000 million cubic meters, ensuring a stable energy supply.

Brussels also seeks the ability to impose a mandatory warning for energy security, aiming to prevent Russian pressure on gas supplies. Any such move would require Council support by a qualified majority in cases of shortages or exceptional demand.

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