EU Urged to Cut Gas Demand Amid 'Exceptionally Low' Storage Levels

The European Union's Energy Commissioner, Dan Jørgensen, has urged EU countries to reduce their gas demand due to rising supply concerns. In a letter seen by Euronews, Jørgensen emphasized that the situation 'has not improved' since his first warning in March and that 'exceptionally low' storage levels are a major concern.

The current storage level is around 70%, which is roughly 12 percentage points below the same point last year. The Dutch TTF, the European benchmark for natural gas prices, has surged to around €72 per MWh, up €40MWh since the US and Israel bombed Iran on February 28.

Jørgensen suggests that using less electricity at peak times can mean burning less gas in power plants, easing pressure on both gas supplies and power prices. He encourages EU countries to consider measures such as 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.

However, Jørgensen stops short of imposing mandatory measures, instead urging EU countries to use the flexibility in EU gas-storage rules to avoid panic buying. He suggests that reaching an 80% filling target may be sufficient for winter security under current conditions, rather than pushing aggressively towards the 90% goal.