Brussels wants member states to turn down the heating and compensate industries willing to cut gas use as it tries to stave off an energy crisis as fears grow that Russia could further squeeze supplies.
EU countries should give households and companies financial incentives to reduce demand for gas as part of measures to curb use ahead of winter, according to a draft “gas demand reduction plan” prepared by the European Commission and seen by the Financial Times.
Countries restarting coal-fired power stations to make up for cuts to Russian gas supplies could be exempted from industrial emissions targets under the plans.
The commission suggests member states should limit heating in public buildings to 19C.
The EU is rushing to find ways to reduce its reliance on Russian gas as part of its plans to try to hit Moscow economically as punishment for its invasion of Ukraine. Europe also fears Russia’s ability to weaponise gas, curtailing supplies, in retaliation for western support of Ukraine.
The commission said in the draft text that measures taken now could cut the impact of “sudden supply disruption by one-third”.
Until this year Russia supplied around 40 per cent of the EU’s gas. But since mid-June, according to the commission paper, flows through Nord Stream 1, the biggest pipeline from Russia to the EU, have been cut by 60 per cent.
Overall flows from Russia are now less than 30 per cent of the average between 2016 and 2021, the draft paper said.
In May, the EU guided member states to fill up gas storage facilities by 80 per cent by November in order to have enough energy for the winter. But Moscow’s recent moves to shut off supplies to the Baltic states, Finland, Poland and Bulgaria and reduce flows to Germany and Italy have left countries unlikely to meet this target.
Germany has already started to implement demand reduction measures, including limiting the hours of hot water to certain urban areas and shutting down leisure centres.
The draft paper also suggests that certain industries could move operations from areas where demand is tightest to regions where there is better energy supply, and that member states should ensure that key industries are prioritised.
Cees Oudshoorn, managing director VNO-NCW, the confederation of Dutch Industry & Businesses, said: “the Netherlands has a large industrial sector and we have concerns about the possible shutdown of large factories that use gas if Russia really turns off the gas switch. But the Netherlands has taken a number of important measures recently. For instance coal-powered plants can produce more power temporarily.”
The final plans are expected to be published next week ahead of an emergency meeting of energy ministers. The commission declined to comment.
Additional reporting by Andy Bounds
