a) Security of supply 

The EU’s energy-security challenges are mainly linked to its primary energy supply dependence on non-EU countries. With the introduction of the European Green Deal, the EU has set out important steps it will take to reduce its dependence on imported fossil fuels by setting ambitious renewables and energy-efficiency targets. However, the 2022 energy crisis and the energy-price shock that followed highlighted the need to do more and take further steps to decrease the EU’s dependency on non-EU sources of primary energy. In particular, the REPowerEU plan sets out important steps to shield households and businesses from supply shocks by: (i) strengthening underground storage capacity of gas; (ii) upgrading and extending liquefied-natural-gas infrastructure; and (iii) diversifying both the sources and routes of pipeline gas.

To deliver on these objectives, the extension of some of the measures, mainly the November gas storage filling target, adopted previously for a limited period of time, is necessary. At the same time, market conditions have changed. With this proposal, and building upon the Commission Recommendation adopted today, the Commission aims to ensure energy security and resilience of the European union energy system while supporting Member States by providing an even higher degree of flexibility on filling trajectories to fulfil filling targets for gas storage at their own pace, reducing system stress and minimizing the room for market distortions.

b) Role of gas storage, current problems and flexibility

Gas storage contributes to security of supply by providing additional supply if there is strong demand or if supply is disrupted. Storage supplies 25-30% of gas consumed in the EU in winter. During the heating season, storage reduces the need to import additional gas and helps to absorb supply shocks.

Recognising this fact, and taking actions against both the weaponisation of Russian gas supplies and market volatility, the Commission drafted in spring 2022 – and the co-legislators quickly approved – amendments to Regulation (EU) 2017/1938 on the security of gas supply with regard to gas storage. 1 The amendments introduced a target to ensure that gas-storage facilities were 90% full by 1 November (filling target), with a series of intermediate targets for each Member State in February, May, July and September of the year thereafter (filling trajectory). At the same time, the amendments introduced certification requirements for storage system operators (SSOs) to improve control over strategic assets and avoid the risk of there being insufficient gas in storage ahead of the winter.

c) Objective of the proposal

The amendments in Regulation (EU) 2017/1938 on gas storage are set to expire at the end of 2025. The continuing tight situation in the global gas-market calls for an extension of these provisions beyond 2025.

At the same time, the European Commission plans to review the EU’s energy-security framework, including by making an assessment as to whether a potential legislative proposal should incorporate permanent storage-filling measures for Member States. However, this proposal is not planned for next year.

A temporary extension of the existing gas-storage provisions is necessary to continue providing predictability and transparency in the use of gas-storage facilities across the EU.

The gas-storage provisions in Regulation (EU) 2017/1938 were introduced through Regulation (EU) 2022/1032 for a period of three years. The provisions expire at the end of 2025. The proposal aims to extend the existing provision by a further two years on a temporary basis until a new energy-security framework is potentially put in place, most likely in the course of 2027. The extension would be consistent with the existing policy and would help to improve energy security and gas-market stability. The proposal for prolongation does not aim to alter any other aspects of the gas-storage provisions.

Following geopolitical developments, in March 2022, the Commission issued the ‘REPowerEU’ Communication for a joint European action to promote more affordable, secure and sustainable energy. Consequently, the Commission presented a legislative proposal (the Gas Storage Regulation – Regulation (EU) 2022/1032) to ensure a sufficient level of annual storage from winter 2022/2023 and into the future.

As part of a fitness check of the current energy-security framework, the Commission launched a public consultation to gather the views of a broad range of stakeholders on the benefits and possible future challenges facing Europe in the area of energy security. The public consultation, concluded at the end of November 2024, is also taking stock of the gas-storage provisions and their contribution to overall energy security.

This proposal amends Regulation (EU) 2017/1938, the legal base of which was Article 194(2) of the Treaty on the Functioning of the European Union. This proposal is based on Article 194(2) of the Treaty on the Functioning of the European Union.

The planned measures of the present initiative are fully in line with the subsidiarity principle. There is a need for an EU-level action because interruption to the EU’s gas supply: (i) poses high risks; (ii) would have significant effects on many Member States; and (iii) would affect gas prices across the EU.

The initiative complies with the proportionality principle. Although the ultimate annual filling target for 1 November is laid down through the Regulation, the targets take into account the situation of individual Member States and the size of the gas-storage facilities located on their respective territories. Exemptions/derogations laid down by Regulation (EU) 2017/1938 relate to the Netherlands (Article 6a.3) and also to Austria, Czechia, Hungary, Latvia, and Slovakia (Article 6a.2). The proposed 90% filling rate is a necessary and appropriate level to ensure security of supply over the winter in the event of serious supply disruptions, without putting an excessive burden on Member States, energy companies or the public.

Intermediary filling targets are laid down on an annual basis, after consultation with the Member States (through their participation in the Gas Coordination Group). These targets allow for a sufficient level of flexibility for Member States to reflect both the existing energy situation as well as gas-market fundamentals.

This is a proposal to amend Regulation (EU) 2017/1938, and therefore the instrument chosen is an amending Regulation. Given that this is not a full revision of the Regulation, a recast is not considered appropriate.

This proposal is accompanied by a report on the implementation and impact of gas-storage provisions, which concludes that both the gas-storage filling trajectories and the certification process for gas-storage facilities have had a positive impact on the security of energy supply.

The Commission submits annual reports, prepared in consultation with Member States, that include an analysis of the potential effects of the Regulation on gas prices and potential gas savings.

Additionally, as part of the fitness check of the energy-security framework, and in order to gather the views of a wide range of stakeholders, the Commission launched a public consultation. The consultation process was launched in September 2024 and lasted until November 2024. Over 100 participants provided insights and views to the consultation, including on the role of gas storage in the overall energy-security framework. Upon analysing the results of the public consultation, the Commission may conclude that a wider revision of the energy-security framework is needed and, in that context, may propose a continuation of the mandatory intermediate and ultimate annual targets for storage filling. However, the revision process is likely to last at least two years. Recognising the significant role that gas storage has played so far in boosting the energy security of Member States, a temporary prolongation of the mandatory filling target and of the intermediary targets requirement is considered necessary.

As part of the public consultation related to the fitness check, stakeholders were consulted on the importance of gas storage and the utility of setting mandatory filling targets.

During 2025, as part of the fitness check of the overall energy-security framework, the Commission intends to mandate an external contractor to carry out an impact assessment. The contractor would also be asked to collect external views and expertise at the same time.

As mentioned in the paragraph above, the Commission intends to carry out an impact assessment during 2025. Questions related to the gas-storage provisions will be part of the impact assessment. Due to the shortness of time remaining and the expiration of current provisions in December 2025, no impact assessment is being carried out for this temporary measure.

The measure will enable support to be targeted at some of the most vulnerable customers, and in particular those already experiencing energy poverty.

The impact on the EU budget associated with this proposal concerns the staffing and other administrative expenditures of the European Commission’s Directorate-General (DG) for Energy. The proposal seeks to prolong provisions improving the EU’s architecture for the security of its gas supply. These prolonged provisions would entail continued obligations for Member States and, correspondingly, a continued strengthened role for DG Energy in a wide range of areas identified in the original proposal, namely:

·overall management and implementation of the Regulation (1 FTE);

·management of the strengthened role of the Gas Coordination Group (0.5 FTEs);

·monitoring of filling rates and drawing up of technical implementation specifications, such as filling trajectories (including economic and technical analysis and data management) (1.5 FTEs);

·assessment of the notifications on burden-sharing set out in Article 6c (1 FTE);

·administrative support (1 FTE).

In addition, the implementation, coordination and follow-up of this amending regulation among Member States will require additional administrative appropriations of up to EUR 150 000 a year for official trips and expert meetings, in particular meetings of the Gas Coordination Group.