EU Urges Continued Energy Demand Reductions Ahead of Winter

European gas storage is about 70 % full, roughly 12 percentage points lower than the same point in the previous year, according to figures from the trade association Gas Infrastructure Europe. The Dutch TTF benchmark is trading near €72 per megawatt-hour, a rise of €40 per megawatt-hour since the United States and Israel bombed Iran on 28 February. Analysts warn that, if LNG export volumes from the Gulf do not increase or if Norwegian maintenance prolongs export constraints, winter peak prices could exceed €100 per megawatt-hour.

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European Energy Commissioner Dan Jørgensen sent a letter to EU governments urging them to maintain or introduce measures that curb gas and electricity demand for as long as necessary. The Commission recommends voluntary actions that proved effective during the 2022 energy crisis, such as reducing electricity use during peak hours, promoting smart-meter-driven demand shifting, limiting heating temperatures in public buildings, restricting outdoor heating, and switching off non-essential public lighting at night. While the letter does not impose mandatory steps, it points ministers toward national emergency plans that contain stronger tools—interruptible gas contracts and the ability to switch power plants from gas to alternative fuels. Jørgensen also encourages the use of flexibility in EU gas-storage rules, suggesting an 80 % filling target rather than the previously pursued 90 % goal to avoid a late-season purchasing rush.

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The Commission argues that lower electricity consumption at peak times reduces gas-fired generation, easing pressure on both gas supplies and power prices. Households and businesses, already sensitive to energy bills, could benefit from demand-side measures that help contain price spikes. However, the Commission notes that buying large volumes of gas in a tight global market could itself drive prices higher, making the 80 % storage target a compromise between security and market stability.

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Although the EU’s gas storage is described as “exceptionally low,” the Commission states there is currently no immediate risk to security of supply. The emphasis now shifts from protecting consumers from high prices to managing demand, as consumption increasingly becomes part of the supply equation. The success of the voluntary measures and the flexibility of national emergency plans will determine whether the EU can navigate the winter without a severe price or supply crisis.

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