Brussels (Brussels Morning Newspaper) – The European Union plans to propose an extension of gas-storage targets despite widespread concern among member states that the regulations are contributing to market speculation and inflating prices, Bloomberg reported.
The European Commission will propose keeping existing targets unchanged until 2027, according to a draft proposal. It restated that a plan to fill storage facilities to 90% full by November 1 remained compulsory, but that interim targets during the summer filling season were “indicative.”
The European Union first agreed to emergency rules on gas storage at the height of the 2022 energy situation to allay fears of supply shortages following Russia’s all-out invasion of Ukraine. Currently, that represents EU countries must ensure their facilities are 90 per cent full by November each year.
The effort was designed to ensure the EU has sufficient gas each winter and to decrease the risk of price spikes. But several nations claim that it is now contributing to higher prices, and are trying for more flexibility on the annual plan and connected interim monthly targets.
Recently, the EU revealed its Clean Industrial Deal plan to protect struggling heavy industries like cement, steel and paper, which confront persistently high energy costs that they say hurt their capacity to compete.
What concerns do EU nations have about rising gas prices?
Analysts say the pressure to fulfil storage targets is encouraging countries to subsidize gas investments. At a panel of member country representatives in the EU earlier this month, Germany, Spain, Austria, Denmark, Italy, Greece, France, the Czech Republic and the Netherlands all inflated concerns about the current regulations, according to two EU diplomats.
The governments pushed to make the objectives either more relaxed ahead of this winter or completely voluntary.
This week’s bid from the Commission will be “reflective of the flexibility” that European Union nations have requested and will give them more “breathing space” for fulfilling interim thresholds, according to one of the Commission officials, both the interim monthly goals and the last November target will remain mandatory.
EU in its Clean Industrial Deal, the EU executive also stated it would assume
“more flexible rules”
on storage. The new plan on targets will
“help to reduce system stress and avoid market distortions linked to gas storage refilling, supporting refilling at better purchasing conditions and security of supply,”
It noted.
