EU Energy Chief Warns of Price Crisis, Urges Countries to Curb Gas Demand
EU Energy Commissioner Dan Jorgensen has warned of an energy price crisis and urged member states to consider measures to cut gas and electricity demand ahead of winter.
The European Union is confronting an energy price crisis driven by the fallout from the Iran war, the bloc's energy commissioner has said in a letter to member states' energy ministers, urging governments to weigh measures to curb natural gas demand.
"We are facing a price crisis linking to a supply crisis," EU Energy Commissioner Dan Jorgensen wrote in the letter.
Europe relies heavily on imported oil and gas, with foreign suppliers covering roughly 80% of the bloc's gas needs. That dependence has left it exposed to surging global energy prices after the Iran war effectively closed the Strait of Hormuz, a route that normally carries about 20% of the world's oil and liquefied natural gas.
While Europe has not yet faced supply shortages, it is contending with soaring prices, and some countries are finding it difficult to fill gas storage before winter, when demand for home heating peaks. EU-wide gas storage is about 70% full, 12 percentage points lower than at the same time last year, according to data from Gas Infrastructure Europe.
Jorgensen said the EU is better prepared than it was in the winter of 2021, when Russia squeezed gas supplies by reducing deliveries, crediting increased LNG import capacity, more renewable energy and lower gas demand. He nonetheless pressed governments to step up winter preparations.
"I invite you to consider taking or continuing to take measures that can sustain [gas storage] injections or reduce gas and electricity demand for as long as necessary," he said.
Measures he suggested include limiting temperatures in public buildings, preventing outdoor heating and switching off unnecessary public lighting.
A European Commission spokesperson did not immediately respond to a request for comment.