EU Urged to Cut Gas Consumption Amid Price Fears and Low Reserves

The European Commission has called on EU countries to reduce gas and electricity consumption due to rising energy prices. This warning comes as global supply is limited, according to a letter from Energy Commissioner Dan Jørgensen to EU ministers.

In the letter, Jørgensen suggests that reducing demand could be one of the main ways to curb further price increases. He urges countries to cut gas and electricity consumption 'to the extent necessary'. The commissioner emphasizes that despite the difficult situation, there is currently no immediate threat to energy supplies.

The EU's gas storage facilities are only about 68% full, which is lower than the 71% recorded during the same period in 2021. This low level of reserves, combined with disruptions to global gas flows due to the conflict in Iran, has heightened concerns about an expensive winter in Europe.

The European Commission is also reminding governments that any price-containment measures should be temporary and clearly targeted so as not to encourage additional energy consumption. This recommendation comes as EU countries face a struggle for liquefied natural gas with Asia amid record-low inventories.