Toolbox of measures
The spike in wholesale prices in 2021 brought concerns about its effect on end-users, in particular the most vulnerable consumers. To clarify what measures are possible under the existing EU rules, the Commission published the Communication ‘Tackling rising energy prices: a toolbox for action and support‘ on 13 October 2021.
The Communication documents a range of short- and medium-term initiatives that EU countries can take under the existing legislative framework and other potential responses within the Commission’s remit.
REPowerEU plan
Within two weeks from the Russian invasion of Ukraine, which amplified the ongoing strain on the energy markets, the Commission published on 8 March the Communication ‘REPowerEU: Joint EU action for more affordable, secure and sustainable energy‘.
It states the EU’s intention to phase out its dependency on Russian fossil fuels, outlining a series of measures to deliver on this ambition, some of which complement the 2021 toolbox and look at the EU’s security of supply. This blueprint was embraced by EU leaders as part of the ‘Versailles declaration’, in March 2022.
On 18 May 2022, the REPowerEU plan was published, presenting a comprehensive set of actions and resources to meet the goals outlined in the previous communication. It aims to
- saving energy
- producing clean energy
- diversifying our energy supplies
Increasing energy savings and efficiency and scaling up renewables are expected to alleviate the pressure on energy prices while boosting the green transition in the EU.
The website REPowerEU: affordable, secure and sustainable energy for Europe provides further details about the plan and its actions.
Security of supply and affordable energy prices
Gas storage
On 23 March 2022, the Commission proposed a new Regulation on measures to safeguard the security of gas supply. It also published the Communication ‘Security of supply and affordable energy prices: Options for immediate measures and preparing for next winter‘ (COM/2022/138), setting out ideas for collective European actions to address the causes of the problem in the gas market and ensure security of gas supply at reasonable prices for citizens and businesses, notably by restocking gas storage facilities.
The new Gas Storage Regulation (EU/2022/1032) was agreed upon by the co-legislators on 27 June 2022 and requires EU countries to fill gas storage facilities to 80% by 1 November and to 90% by the years to follow.
Saving gas
On 20 July 2022, the Commission proposed new rules on coordinated demand reduction measures for gas, together with the Communication “Save gas for a safe winter” (COM/2022/361). The new Regulation on coordinated demand-reduction measures for gas (EU/2022/1369) was adopted on 5 August and was valid until 31 March 2023.
On 20 March 2023, the Commission proposed a prolongation of the regulation on the basis that reducing EU gas demand by 15% for another 12 months would ensure the security of gas supply throughout next winter. The new regulation (EU/2023/706), prolonging the measures for another year, was adopted on 30 March 2023. It includes more frequent monitoring and reporting on energy savings data.
Emergency intervention to address high prices
On 14 September 2022, the Commission proposed a new Regulation on an emergency intervention to address high energy prices to reduce the energy bills for European citizens and businesses. It includes measures to reduce electricity demand to help lower the electricity costs for consumers and suggests a temporary revenue cap on electricity producers using technologies with lower costs, such as renewables, nuclear and lignite. The Commission proposes to set the cap for those “inframarginal” producers to €180/MWh. The third measure is a temporary solidarity contribution to excess profits made in the oil, gas, coal and refinery sectors. It would be collected by EU countries on 2022 profits, which are at least 120% of the average profits of the previous 3 years, and would be redirected to energy consumers. The Regulation on an emergency intervention to address high energy prices (EU 2022/1854) was adopted on 6 October 2022.
Solidarity – coordinated gas purchases
On 18 October 2022, the Commission proposed a new emergency regulation to address high energy prices and ensure the security of supply for the coming winter, aiming to enhance solidarity through better coordination of joint gas purchasing. The Regulation (EU) 2022/2576 was adopted on 19 December 2022 and provides a legal framework for the EU Energy Platform to support EU countries in the preparation for winter 2023/24 and notably in the filling of their gas storage facilities.
The package presented on 18 October 2022 also included the adoption of an EU action plan to digitalise the energy system(COM/2022/552 ), suggesting to speed up the use of digital tools (smart meters, electric vehicles, internet of things devices and other innovative systems) which will help consumers save on their energy bills and contribute to ending EU dependence on imported Russian fossil fuels.
IEA cooperation on energy savings
Together with the International Energy Agency (IEA), the Commission published in April 2022 “Playing my part“, which includes a series of actions that citizens can take to reduce their energy use, save money and at the same time support Ukraine by reducing the EU’s dependence on Russian fossil fuels. The Playing my part report suggests 9 individual actions, that, if implemented by many, can make a difference.
The IEA and the Commission presented in an online event on 21 October 2022 a brief guideline on concrete actions that small businesses can carry out and what supporting measures, specifically tailored to their needs, are available to them. The “Coping with the crisis – increasing resilience in SMEs through energy efficiency” guide provides advice on immediately actionable steps enterprises can take to reduce energy consumption and improve energy efficiency.
