Overview of the EU’s proposed gas price measures and solidarity plans
Following a directive from European leaders, the European Commission prepared a comprehensive package aimed at lowering gas prices and, by extension, electricity costs. The plan, developed last Thursday, includes measures to limit price volatility, coordinate joint gas purchases, and curb competition between member states that could push prices higher. The overarching goal is to bolster collective buying power and reduce dependence on costly imports, with a specific aim of jointly securing at least 15% of stored gas among the Twenty-Seven member states.
In an interview on RTL-TVi, Justice Commissioner Didier Reynders indicated that 15% of volume could be acceptable to member states. He spoke shortly after the College of Commissioners held an extraordinary videoconference and before the Community Steering Committee reviews the proposal on Tuesday. The plan is set to be presented to EU leaders during the European Council meeting scheduled for 20–21 October. The objective is to finalize the new proposal in time for the negotiations ahead.
The Commission argues that a shared gas-purchasing approach would mirror the tactic used by the 27 countries when acquiring vaccines for Covid-19. By pooling demand, member states could negotiate better terms, reduce competition-driven price spikes, and enhance transparency to help smaller and more vulnerable buyers. This coordination would not yield immediate savings but would steady demand as storage facilities are replenished in spring, currently around 91% full. The winter of 2023/2024 could be more challenging if Russia withdraws further gas supplies, prompting a broader strategy to stabilize markets across the bloc.
Several complementary measures are proposed to keep prices in check. A temporary price cap and a dynamic limit on intraday price increases are under consideration to blunt volatility in energy derivatives markets. The plan also introduces a new reference index, alongside the Dutch TTF, intended to reflect more accurately LNG imports and avoid artificial inflation or manipulation linked to Russian influence. The ACER-regulated index is expected to be ready to guide contracts for the gas filling season that typically begins in March each year.
Solidarity and preparedness provisions
Among the core elements are solidarity agreements designed to support member states hit hardest by the energy crisis. The draft envisions direct applicability of solidarity provisions even where formal bilateral agreements do not exist, ensuring rapid assistance in emergencies. Brussels would also extend solidarity obligations to member states with limited LNG storage capacity, such as Spain, which operates several regasification plants. The aim is to guarantee readiness and a swift response if needed in any future disruption.
As the plan progresses, it also contemplates further gas demand reductions. A 15% cut target could be reinforced if necessary, with a flexibility to adjust targets downward or upward depending on the evolving market situation. The possibility of placing an upper limit on the gas used to generate electricity is discussed in the context of the Iberian exception affecting Spain and Portugal. The Commission emphasizes that any such mechanism must be workable across diverse energy systems and should not lead to unintended flows beyond EU borders. While some countries have shown concerns about strict price caps, the draft keeps room for targeted measures where conditions justify them, without assuming a one-size-fits-all approach for the entire union.
Germany, among others, has warned against policies that could disrupt supply or create shortages. The current plan seeks a balance: stabilizing prices and ensuring security of supply while respecting the varied energy mixes and infrastructures across member states. The Commission stresses the importance of a coordinated approach that supports both immediate relief and long-term resilience, with ongoing assessments and adjustments as conditions evolve.
Ultimately, the proposed framework aims to reduce vulnerability to external shocks, improve transparency in the gas market, and reinforce the EU’s strategic autonomy in energy. The emphasis remains on negotiation, collective action, and prudent use of reserves, rather than unilateral measures that could fragment the internal market. The dialogue with trusted suppliers and the pursuit of coordinated purchasing underscore the bloc’s commitment to shared stewardship of its energy resources. [European Commission, energy policy briefing, 2023]