EU Told to Curtail Energy Demand Amid Gas Storage Woes

European Energy Commissioner Dan Jørgensen is urging EU governments to continue reducing energy demand to mitigate the effects of low gas storage levels and high prices. In a letter, he noted that despite efforts since March, the situation remains challenging.

The current gas storage level in the EU stands at around 70%, which is roughly 12 percentage points below the same point last year, according to Gas Infrastructure Europe. The Dutch TTF, the European benchmark for natural gas prices, has surged to €72 per MWh, up €40MWh since February 28.

Jørgensen suggested using less electricity at peak times can mean burning less gas in power plants, easing pressure on both gas supplies and power prices. He pointed out that households and businesses are already sensitive to energy bills, while governments are under pressure to cushion consumers from another price shock.

The EU's top energy leader stopped short of imposing mandatory measures, instead recommending voluntary demand reduction measures used during the 2022 energy crisis. These include reducing electricity consumption during peak hours, encouraging consumers to shift demand through smart meters and retail tariffs, limiting temperatures in public buildings, restricting outdoor heating, and switching off unnecessary public lighting at night.