Alarm and further measures to reduce gas consumption are high on the Commission's agenda and measures are expected to be announced next Tuesday 18 October.
Energy Commissioner Countrywoman Simpson said yesterday, there is an immediate need to reduce gas consumption, even by activating the EU alert or even by a new and different approach and further measures.
As he explained, «any intervention in the gas market requires a further reduction in gas demand. This is not pleasant, but a necessity to guarantee security of supply in the context of a market intervention. An option is to activate the EU alert, which would make the demand reduction target of 15% mandatory. However, a different approach or further measures may be needed to ensure that the level of savings is sufficient. Any measures we take to reduce prices should not send the wrong signals that increase consumption across the EU, consumption of gas that will not be available in sufficient volumes.».
What the activation of the EU Alert means
The Voluntary Gas Demand Reduction Regulation provides for the possibility for the Council to trigger an «EU alert» on security of supply, in which case the reduction of gas demand will become mandatory. The alert will be activated by an executive decision of the Council, on a proposal from the Commission.
The Commission will make a proposal to activate a «Union alert» in the event of a significant risk of serious gas shortage or exceptionally high gas demand or if five or more Member States that have declared a national alert request the Commission to do so.
In this context each Member State prepares its own cutback plan with the aim of reducing gas consumption by 15%.
The Greek plan
The Greek gas reduction plan will be submitted to the European Commission by 31 October, indicating the industries that will be exempt from gas cuts, based on criteria that demonstrate their importance.
The selection of the industries that can be exempted from the mandatory reductions in gas consumption will be made by RAE. Already 103 Greek industries have applied to RAE to be exempted as major industries from the gas cuts, taking advantage of the relevant Directive.
The RAE's deadline for submitting application files expired on 10 October, and the Regulatory Authority's services will assess the applications and draw up the relevant priority list of exemptions from the cuts by the end of October.
It should be noted that the most important industries on the list will be the last to be cut, while according to reports all energy-intensive industries have applied for an exemption, but also many medium and small ones.
The exceptions
The European institutional framework allows Member States to exempt large gas consumers that provide goods and services that are assessed as critical and strategic for the normal functioning of society.
Critical social sectors are defined as health, safety and the environment, defence, refineries and food. Economic sectors or industries that are part of cross-border supply chains and provide goods and services critical not only at national but also at European level are also considered critical.
The feasibility of substituting natural gas with other fuels is also assessed, as well as the impact on the installations of an undertaking of the compulsory closure of its operation.
