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Free AccessMNI BRIEF: EU Ministers Agree 15% Gas Consumption Cut
EU energy ministers agreed Tuesday on a voluntary reduction in gas consumption of 15% ahead of the 2022-23 winter, as well as a mechanism to trigger a Union Alert if there is a risk to supply, in which case reductions would become mandatory. The savings are aimed at building storage levels ahead of the winter and possible disruptions of supply by Russia.
States agreed that the EU Commission will present a proposal to trigger a ‘Union alert’ in case of a substantial risk of a severe gas shortage or exceptionally high gas demand, or if five or more member states that have declared an alert at national level request the Commission to do so.
Member states agreed to reduce their gas demand by 15% compared to their average consumption in the past five years, between 1 August 2022 and 31 March 2023, with measures of their own choice. Ministers specified some exemptions and possibilities to request a derogation from the mandatory reduction target, including for states not interconnected to other member states’ gas networks and those with grids not synchronised with the European electricity system and heavily reliant on gas for electricity production.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.