Proposal for a COUNCIL REGULATION on coordinated demand reduction measures for gas
Date: 2022-07-20
Institutions: Directorate-General for Energy, European Commission
Subjects: EU Member State, EU energy policy, energy consumption, energy crisis, energy demand, energy saving, gas supply, natural gas, security of supply, self-sufficiency in energy

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   EUROPEAN COMMISSION  Brussels, 20.7.2022  COM(2022) 361 final 2022/0225 (NLE)  Proposal for a COUNCIL REGULATION on coordinated demand reduction measures for gas  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Over the past year, supplies of gas from Russia have had a series of disruptions that can only 
be explained by a deliberate attempt to use energy as a political weapon. Russia has been for 
many years the main gas supplier of the EU. Last year, the EU relied on Russia for more than 
40% of its gas supplies. The supply of gas has continuously decreased since the start of the 
war. The pipeline flows of gas from Russia are less than 30% of the average of the previous 
years.  Twelve  Member  States  have  activated  the  first  or  second  crisis  level  pursuant  the 
common EU classification. This supply shock has already significant impacts on the price of 
gas, on the price of electricity, on inflation, on the overall EU financial and macroeconomic 
stability, and on all citizens.  

There is no reason to believe this deterioration of gas supply will stop. The EU is today facing 
the realistic prospect of a full and protracted disruption of gas from Russia at any moment. It 
must be prepared for it and take pre-emptive actions to mitigate the impacts of possible major 
supply disruptions. 

The EU has invested sustained efforts into improving the overall security of supply situation 
of the Union in the past decade, in particular focusing on diversification through infrastructure 
development, as well as the strengthening of the gas security of supply framework. While the 
current  framework  has  been  conceived  and  been  successful  in  addressing  short-term 
disruptions  and extreme weather  events,  it remains inadequate to  deal  with  highly uncertain 
supply prospects and major sustained cuts in supply.  

In reply to the heightened risk for the coming winter, the EU has considerably reinforced its 
immediate preparedness  for such a major supply disruption the last few months: it has fully 
taken advantage of the possibilities provided by the current legal framework, it has introduced 
measures to incentivise the refilling of storage, established the EU Energy Platform to support 
diversification  of  gas  supplies  and  announced,  as  part  of  the  REPowerEU  plan  of  18  May 
2022,  the  goal  to  end  the  dependency  on  Russian  fossil  fuels  as  soon  as  possible.  In  its 
resolution of 7 April 2022, the European Parliament called for a plan to continue ensuring the 
Union’s  security  of  energy  supply  in  the  short-term  to  be  presented.  The  EU  leaders  in  the 
European Council subsequently asked on 31 May and 23 June 2022 to improve preparedness 
for possible major supply disruptions as a matter of urgency with a view to securing energy 
supply at affordable prices. 

In  view  of  possible  further  supply  cuts  by  Russia  and  building  on  the  need  for  the  EU  to 
jointly  address  these  new  challenges,  further  reductions  of  gas  demand  are  crucial  to  avoid 
far-reaching  negative  consequences  for  citizens  and  the  EU  economy.  The  proposed 
Regulation  creates  an  improved  coordination  framework  for  national  gas  demand  reduction 
measures.  It  also  introduces  a  possibility  for  the  Commission  to  declare  a  new  Union  crisis 
level,  namely  a  ‘Union  alert’,  triggering  a  compulsory  Union-wide  demand  reduction 
obligation  and  aiming  to  safeguard  security  of  gas  supply.  The  commitment  of  all  Member 
States to reduce gas demand by measures of their own choice in case of a further deterioration 
of  the  supply  situation  leading  to  a  Union  alert  is  key  to  prevent  the  significant  economic 
harm  stemming  from  further  supply  disruptions.  Joint  and  well-coordinated  demand 
reductions can significantly reduce the risk of curtailment of industries that are crucial for the 
EU supply chains and the EU’s competitiveness in case of a major supply disruption. As set 

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out in the Communication “Save Gas for a Safe Winter” of 20 July 2022, it is much cheaper 
for  citizens  and  industry  to  act  now  to  reduce  demand  rather  than  face  uncoordinated 
curtailments later.  

The amount of the necessary demand reduction volumes which will reduce the impact of the 
supply  disruption  but  not  avoid  all  negative  impacts,  should  consider  the  volumes  of  gas 
demand  which  could  be  at  risk  in  case  of  a  full  disruption  of  Russian  gas  supplies.  These 
volumes  can  be  distributed  amongst  all  Member  States,  based  on  a  comparison  with  their 
average consumption over the last 5 years.  

With a view to avoiding the significant distortions of the internal market which are likely to 
occur if Member States react in an uncoordinated manner to a potential further Russian supply 
disruption, it is crucial that all Member States act jointly and in a spirit of solidarity as soon as 
possible. While some Member States may be more exposed to the effects of a disruption of 
Russian supplies, all Member States will be negatively affected and can contribute to limit the 
economic  harm  of  such  disruption.  This  proposal  therefore  reflects  the  principle  of  energy 
solidarity,  which  has  recently  been  confirmed  by  the  Court  of  Justice  as  a  fundamental 
principle  of  EU  law1.  Member  States  which  make  all  efforts  to  cope  with  the  gas  shortage 
within  their  territory  should  be  entitled  to  fully  benefit  from  the  energy  solidarity  of  their 
neighbours.  

However, as certain Member States are not able to free up significant volumes of pipeline gas 
to  the  benefit  of  the  Union,  due  their  specific  geographical  or  physical  situation,  such  as 
missing  or  low  pipeline  interconnection  to  other  Member  States,  the  proposal  includes  the 
possibility  for  those  Member  States  to  apply  for  a  limitation  of  their  mandatory  demand 
reduction obligation. 

• 

Consistency with existing policy provisions in the policy area 

The  proposed  instrument  sets  out  temporary,  proportionate  and  extraordinary  measures.  It 
complements existing relevant EU initiatives and legislation, which ensures that citizens can 
benefit  from  secure  gas  supplies  and  that  customers  are  protected  against  major  supply 
disruptions. 

It  flows  logically  from  existing  initiatives,  such  as  the  “REPowerEU”,  the  proposal  for  a 
Hydrogen and Gas Market  Decarbonisation Package2 and the “Save Gas for a Safe Winter” 
initiative. The proposed initiative is fully complementary to the EU legislation on security of 
gas supply, which already established a comprehensive set of rules to better protect citizens 
and companies against supply interruptions. Regulation (EU) 2017/1938 introduced, inter alia, 
emergency plans whereby Member States are required to prepare for different crisis levels and 
plan for measures that can be taken in the event of a national alert. Solidarity mechanisms are 
also in place, ensuring that Member States cooperate across borders to ensure that energy is 
provided to those customers in a region who need it most, in case of supply disruptions. The 
Commission’s  proposal  for  a  Hydrogen  and  Gas  Market  Decarbonisation  Package  includes 
further measures to enhance preparedness against supply disruptions. 

1 
2 

Judgment in Case C-848/19 P (Germany v Poland). 
Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on  common  rules  for  the 
internal  markets in renewable and natural gases and in hydrogen COM/2021/803 final; proposal for a 
Regulation  of  the  European  Parliament  and  of  the  Council  on  the  internal  markets  for  renewable  and 
natural gases and for hydrogen (recast) COM/2021/804 final. 

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Following the Russian invasion of Ukraine, the EU has set out the REPowerEU Plan with the 
aim to end the EU's dependence on Russian fossil fuels, as soon as possible and at the latest 
by 2027. To achieve this, the REPowerEU Plan sets out measures related to energy savings 
and energy efficiency, and proposes an accelerated roll-out of clean energy to replace fossil 
fuels in homes, industry and power generation. In this context, the proposed initiative builds 
on the tools the EU already has at its disposal and is fully consistent with the goals set out in 
REPowerEU.  

The  Commission’s  proposal  for  a  Hydrogen  and  Gas  Market  Decarbonisation  Package3 
includes  further  measures  to  enhance  preparedness  against  supply  disruptions,  notably  by 
revising the Regulation (EU) 2017/1938. In addition, the recently adopted Storage Regulation 
(EU)  2022/10324  introduced  storage  obligations  in  response  to  the  Russian  invasion  of 
Ukraine,  in  which  supply  shortages  and  price  peaks  can  result  not  only  from  the  failure  of 
infrastructure or extreme weather conditions, but also from geopolitical changes, leading from 
longer lasting or sudden supply disruptions. The storage filling obligations in Regulation (EU) 
2022/1032 contribute to safeguarding security of gas supply for the winter of 2022–2023. 

The existing gas security of supply rules are, however, not fully adapted to security of supply 
challenges  of  the  nature  and  magnitude  we  are  currently  facing,  where  immediate 
preparedness becomes essential in order to avoid severe economic and social consequence of 
major  supply  disruptions.  On  31  May  and  23  June  2022  the  European  Council,  in  its 
conclusions,  therefore  asked  for  the preparation  for  further  gas  supply  disruptions  to  be 
carried out as a matter of urgency and in particular to enable closer coordination with  – and 
between - Member States.  

The “Save Gas for a Safe Winter” Communication adopted on 20 July 2022 sets out the tools 
that Europe already has available for a coordinated demand reduction, and what else needs to 
be  done,  so  that  Europe  is  ready  for  full  or  partial  disruptions.  The  proposed  initiative 
responds  to  the  increased  risks  resulting  from  Russia’s  war  against  Ukraine,  and  is  fully 
complementary to the existing security of supply rules. It sets out new rules for coordinated 
demand  reductions  and  introduces  a  new  Union  alert.  Indeed,  while  there  is  already  the 
possibility for the Commission to declare an emergency at Union level, there is currently no 
possibility under existing legislation to declare an alert at Union level. However, the current 
situation  shows  that  such  alert  may  be  useful  to  ensure  that  all  Member  States  take  the 
necessary preventive measures to avoid an energy emergency.  

This proposal for an instrument, enabling coordinated crisis preparation by introducing better 
coordination rules for demand reductions and by creating the possibility to introduce Union-
wide  mandatory  gas  demand  reductions  is  therefore  complementary  to  the  existing 
instruments,  safeguarding  the  security  of  gas  supply  and  ensuring  coordination  between 
demand reduction measures across the EU. 

3 

4 

Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on  common  rules  for  the 
internal  markets in renewable and natural gases and in hydrogen COM/2021/803 final; proposal for a 
Regulation  of  the  European  Parliament  and  of  the  Council  on  the  internal  markets  for  renewable  and 
natural gases and for hydrogen (recast) COM/2021/804 final 
Regulation  (EU)  2022/1032  of  the  European  Parliament  and  the  Council  of  29  June  2022  amending 
Regulation (EU) 2017/1938 and (EC) No 715/2009 with regard to gas storage, OJ L 173/17 of 30 June 
2022. 

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• 

Consistency with other Union policies 

The proposal is an extraordinary measure, to be applied for a limited time, that is consistent 
with  a broader set  of initiatives to  enhance the Union’s energy resilience and to  prepare  for 
possible  emergency  situations.  The  proposal  is  also  fully  compatible  with  competition  and 
market rules, as functioning cross-border energy markets are key to ensure security of supply 
in  a  situation  of  supply  shortages.  Appropriate  rules  in  the  proposal  ensure  that  national 
measures  do  not  hamper  competition  or  compromise  the  integrity  of  the  internal  market. 
Providing for more coordinated demand reductions, it is also in line with the Commission’s 
Green Deal targets. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal  basis for this instrument is  Article 122(1) of the Treaty on the  Functioning  of the 
European Union (‘TFEU’). 

The current shortage of gas supplies constitutes a severe difficulty in the supply of an energy 
product pursuant to Article 122. EU leaders and Commission have identified the urgent need 
for  additional  measures  for  more  coordinated  action  already  during  the  summer  months,  in 
order  to  be  better  prepared  for  possible  further  gas  disruptions  in  the  coming  winter.  The 
measures under the instrument allow all Member States to prepare for possible further supply 
shortages in a coordinated manner. It is therefore justified to base the proposed instrument on 
Article 122(1) TFEU. 

• 

Subsidiarity (for non-exclusive competence)  

The planned measures of the present initiative are fully in line with the subsidiarity principle. 
Because  of  the  scale  and  the  significant  effect  of  further  cuts  in  gas  supply  on  the  part  of 
Russia,  there  is  a  need  for  EU  level  action.  A  coordinated  approach  through  Union-wide 
demand  reduction,  in  the  spirit  of  solidarity,  is  necessary  to  minimise  the  risk  of  potential 
major disruptions during the winter months when gas consumption will be higher and where 
Member States will need to partly rely on the gas stored during the injection season. 

Given the unprecedented nature of the gas supply crisis and its transboundary effects, as well 
as the level of integration of the EU internal energy market, action at Union level is warranted 
as  Member  States  alone  cannot  sufficiently  effectively  address  the  risk  of  serious  economic 
difficulties  resulting  from  price  hikes  or  significant  supply  disruptions  in  a  coordinated 
manner. Only EU action motivated by a spirit of solidarity between Member States can ensure 
that supply disruptions do not lead to lasting harm for citizens and the economy.  

By reason of its scale and effects, the measure can be better achieved at Union level, hence 
the Union may adopt measures, in accordance with the principle of subsidiarity as set out in 
Article 5 of the Treaty on European Union. 

• 

Proportionality 

The initiative complies with the proportionality principle. It falls within the scope of Article 
122(1)  TFEU.  The  policy  intervention  is  proportional  to  the  dimension  and  nature  of  the 
problems defined and the achievement of the set objectives.  

In view of the unprecedented geopolitical situation and the significant threat for citizens and 
the EU economy, there is a clear need for coordinated action. Hence, the proposal does not go 

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beyond what is necessary to achieve the objectives laid down in the current instrument. The 
proposed measures are considered proportionate and build to the extent possible on existing 
approaches, such as the existing crisis levels and emergency plans established in accordance 
with Regulation (EU) 2017/1938. 

This proposal sets the final result to be achieved, in the form of process for setting a legally 
binding  energy  reduction  obligation  for  Member  States,  while  giving  Member  States  full 
autonomy  in  choosing  the  most  effective  means  to  meet  such  obligation  according  to  their 
national specificities and the measures already foreseen in the national emergency plans. 

• 

Choice of the instrument 

Taking into account the dimension of the energy crisis and the scale of its social, economic 
and financial impact, the Commission deems suitable to act by way of a regulation which is of 
general scope and directly and immediately applicable. This would result in a swift, uniform 
and Union-wide cooperation mechanism. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the politically sensitive nature of the proposal and urgency to prepare the proposal so 
that it can be adopted on time by the Council, a stakeholder consultation could not be carried 
out. 

• 

Fundamental rights 

No  negative  impact  has  been  identified  on  fundamental  rights.  The  measures  under  this 
instrument  will  not  affect  the  rights  of  customers  who  are  categorised  as  protected  under 
Regulation (EU) 2017/1938, including all household customers. The instrument will enable to 
reduce the risks associated with gas shortage that would otherwise have major implications on 
the economy and society. 

4. 

BUDGETARY IMPLICATIONS 

This proposal does not require additional resources from the EU budget. 

5. 

OTHER ELEMENTS 

Not relevant. 

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2022/0225 (NLE) 

Proposal for a 

COUNCIL REGULATION 

on coordinated demand reduction measures for gas 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 122(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The Russian Federation, the Union’s main external gas supplier, has started a military 
aggression  against  Ukraine,  a  Contracting  Party  of  the  Energy  Community.  The 
escalation of the Russian military aggression against Ukraine since February 2022 has 
led to gas supplies declining markedly, in a deliberate attempt to use gas as a political 
weapon. Pipeline flows of gas from Russia through Belarus have stopped and supplies 
through Ukraine have steadily decreased. Overall flows from Russia are now less than 
30%  of  the  average  of  2016-2021. This  supply  reduction  has  led  to  historically  high 
and  volatile  energy  prices,  contributing  to  inflation  and  creating  a  risk  of  further 
economic downturn in Europe. 

Against this  background, the Union has developed the REPowerEU Plan on 18 May 
20225 with the aim to end the Union's dependence on Russian fossil fuels, as soon as 
possible  and  at  the  latest  by  2027.  To  achieve  this,  the  REPowerEU  Plan  sets  out 
measures related to energy savings and energy efficiency and proposes an accelerated 
roll-out  of  clean  energy  to  replace  fossil  fuels  in  homes,  industry  and  power 
generation. 

The Union has taken further measures to increase its preparedness against gas supply 
disruptions.  Regulation  (EU)  2022/1032  of  the  European  Parliament  and  of  the 
Council6 was adopted to ensure the filling of underground storage sites for the coming 
winter. 

Furthermore, in February 2022 and in May 2022 the Commission carried out in-depth 
reviews of all national emergency plans and has also carried out in-depth monitoring 
of  the  security  of  supply  situation.  The  measures  taken  since  February  2022  were 
designed  to  be  able  to  fully  phase-out  from  Russian  gas  by  2027,  and  to  reduce  the 
risks stemming from a further major supply disruption. 

5 

Communication from the Commission to the European Parliament, the European Council, the Council, 
the  European  Economic  and  Social  Committee  and  the  Committee  of  the  Regions  REPowerEU  Plan 
(COM/2022/230 final). 

6 
Regulations (EU) 2017/1938 and (EC) No 715/2009 with regard to gas storage (OJ L 173, 30.6.2022, p. 17).  

Regulation (EU) 2022/1032 of the European Parliament and of the Council[1] of 29 June 2022 amending 

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(5) 

(6) 

(7) 

(8) 

(9) 

However,  the  recent  escalation  of  disruptions  of  gas  supply  from  Russia  points  to  a 
significant risk that a complete halt of Russian gas supplies may materialise in the near 
future, in an abrupt and unilateral way.  The Union should therefore anticipate such a 
risk and prepare, in a spirit of solidarity, for the possibility of a full disruption of gas 
supplies  from  Russia,  at  any  moment.  Immediate  proactive  action  is  necessary  to 
anticipate further disruptive actions and strengthen the resilience of the Union to future 
shocks. Coordinated action at Union level can avoid serious harm to the economy and 
citizens resulting from a possible gas supply interruption, 

The  current  legal  framework  for  security  of  gas  supply  set  by  Regulation  (EU) 
2017/19387  does  not  adequately  address  disruptions  of  a  major  gas  supplier  of  more 
than  30  days.  The  missing  legal  framework  for  such  disruptions  leads  to  a  risk  of 
uncoordinated  action  by  Member  States,  which  threatens  to  endanger  security  of 
supply in neighbouring Member States and may put additional burden on the Union’s 
industry and consumers. 

In its resolution of 7 April 2022 on the conclusions of the European Council meeting 
of 24-25 March 2022, the European Parliament called for a plan to continue ensuring 
the Union’s security of energy supply in the short-term to be presented. In its meetings 
on  31  May  and  23  June  2022,  the  European  Council  requested  the  Commission  to 
make proposals for improving preparedness for possible major supply disruptions as a 
matter of urgency with a view to securing energy supply at affordable prices.  

Article  122(1)  of  the  Treaty  on  the  Functioning  of  the  European  Union  allows  the 
Council  to  decide,  on  a  proposal  from  the  Commission  and  in  a  spirit  of  solidarity 
between Member States, upon the measures appropriate to the economic situation, in 
particular  if  severe  difficulties  arise  in  the  supply  of  certain  products,  notably  in  the 
area of energy. The risk of a complete halt of Russian gas supplies by the end of this 
year as described above constitutes such a situation. 

Given  the  imminent  risk  of  disruption  of  gas  supplies  to  the  Union,  Member  States 
should  take  measures  now  to  reduce  their  demand  ahead  of  the  winter  season.  Such 
voluntary  demand  reduction  would  contribute  notably  to  the  filling  of  storage 
capacities, which would not be depleted at the end of the winter, allowing to cope with 
possible  cold  spells  in  February  and  March  of  2023  and  facilitating  the  filling  of 
storages  to  ensure  adequate  levels  of  security  of  supply  for  the  winter  2023-2024. 
Reducing demand for gas will also help ensure adequate supply and drive prices down, 
to  the  benefit  of  the  Union  consumers.  Therefore,  measures  taken  at  Union  level  to 
reduce  demand  would  benefit  all  Member  States  by  decreasing  the  risk  of  a  more 
substantial impact on their economies. 

(10)  The  amount  of  the  recommended  demand  reduction  should  consider  the  volumes  of 
gas  demand  which  would  be  at  risk  of  non-delivery  in  case  of  a  full  disruption  of 
Russian gas supplies. The  volume of the reduction should be distributed amongst  all 
Member States, based on a comparison with their average consumption over the last 5 
years. 

(11) 

In  order  to  promptly  address  the  specific  challenges  of  the  ongoing  and  anticipated 
severe  worsening  of  gas  supply  shortages  and  avoid  distortions  between  Member 

7 

Regulation  (EU)  2017/1938  of  the  European  Parliament  and  of  the  Council  of  25  October  2017 
concerning  measures  to  safeguard  the  security  of  gas  supply  and  repealing  Regulation  (EU)  No 
994/2010. 

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States,  the  Commission  should  be  empowered  to  declare,  after  consultation  of  the 
relevant  risk  groups  and  the  Gas  Coordination  Group  (‘GCG’),  established  under 
Regulation  (EU)  2017/1938,  and  taking  into  account  any  views  expressed  by  the 
Member States in that context, a Union alert, in case the voluntary demand reduction 
measures  prove  to  be  insufficient  to  address  the  risk  of  a  serious  supply  shortage. 
Three  or  more  competent  authorities  of  Member  States  which  have  declared  nation 
alerts  should  be  given  the  possibility  to  request  the  Commission  to  declare  a  Union 
alert. 

(12)  The  Union  alert  should  serve  as  a  Union-specific  crisis  level,  which  should  trigger 
mandatory demand reduction. It should not have a legal impact on the national crisis 
levels  pursuant  to  Article  11(1)  of  Regulation  (EU)  2017/1938.Voluntary  measures 
may  not  by  themselves  be  sufficient  to  ensure  security  of  supply  and  market 
functioning. Therefore, a new instrument  introducing the possibility for a mandatory 
gas demand reduction for all Member States should be established. It should become 
operational  sufficiently  in  advance  of  the  autumn.  Once  a  Union  alert  has  been 
declared, all Member States should be obliged to reduce their gas consumption within 
a pre-defined period. The amount of the necessary demand reduction volumes should 
consider the volumes of gas demand which could be at risk in case of a full disruption 
of Russian gas supplies and should fully take into account voluntary demand reduction 
already  achieved  during  the  same  period.  The  volume  of  the  reduction  can  be 
distributed  amongst  all  Member  States,  based  on  a  comparison  with  their  average 
consumption  over  the  last  5  years.  The  volume  and  the  duration  of  the  mandatory 
demand reduction obligation should also take into account the level of storage filling 
as  reported  pursuant  to  Article  6(d)(1)  of  Regulation  (EU)  2017/1938,  the 
development concerning the diversification of sources of gas, including LNG supplies 
and the development of fuel substitutability in the Union.  

(13)  With  a  view  to  the  significant  distortions  of  the  internal  market  which  are  likely  to 
occur  if  Member  States  react  in  an  uncoordinated  manner  to  a  potential  or  actual 
further Russian supply disruption, it is crucial that all Member States reduce their gas 
demand in a spirit of solidarity. All Member States should therefore, achieve the same 
voluntary and mandatory reduction targets. While some Member States may be more 
exposed to the effects of a disruption of Russian supplies, all Member States will be 
negatively affected and can contribute to limit the economic harm of such disruption, 
be it by freeing up additional volumes of pipeline gas or LNG cargoes which can be 
used by Member States with significant gas deficits, be it by the positive effect on gas 
prices which a demand reduction is likely to have, be it by avoiding market distortions 
through uncoordinated and contradicting demand reduction measures. This Regulation 
therefore reflects the principle of energy solidarity, which has recently been confirmed 
by the Court of Justice as a fundamental principle of EU law8.  

(14)  However,  certain  Member  States  are,  due  their  specific  geographical  or  physical 
situation, such as missing or low pipeline interconnection to other Member States, not 
able  to  free  up  significant  volumes  of  pipeline  gas  to  the  benefit  of  other  Member 
States. Those Member States should therefore be given a possibility to ask for a partial 
derogation from the mandatory demand reduction obligation. The Commission, when 
verifying the conditions for the application of the derogation, should take into account 
if the respective Member State makes full use  of its gas  interconnectors  and uses  its 

8 

Judgment in Case C-848/19 P (Germany v Poland). 

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LNG facilities to re-direct gas to other Member States to the utmost extent, in a spirit 
of solidarity. The Commission should also monitor the total gas consumption as well 
as the use of interconnectors and LNG facilities. 

(15)  Member  States  should  be  free  to  choose  the  appropriate  measures  to  reach  the 
mandatory  demand  reduction.  When  identifying  appropriate  demand  reduction 
measures  and  prioritising  customers  groups,  Member  States  should  make  use  of  the 
measures  identified  in  the  Communication  “Save  Gas  for  a  Safe  Winter”  of  20  July 
2022.  Member  States  should  in  particular  consider  economically  efficient  measures 
such  as  auctions  or  tender  schemes,  by  which  Member  States  can  incentivise  a 
reduction of consumption in an economically efficient manner. The measures taken at 
national  level  may  also  include  financial  incentives  or  compensations  to  market 
participants affected. 

(16)  Any  measure  taken  by  Member  States  to  reach  the  mandatory  demand  reduction 
should  be  necessary,  clearly  defined,  transparent,  proportionate,  non-discriminatory 
and verifiable, and should not unduly distort competition or the proper functioning of 
the  internal  market  in  gas  or  endanger  the  security  of  gas  supply  of  other  Member 
States  or  of  the  Union.  Given  that  non-market  based  measures,  such  as  those 
mentioned in Annex VIII to Regulation (EU) 2017/1938, can be particularly damaging 
to  the  security  of  gas  supply  and  the  internal  market,  Member  States  should  rely  on 
market-based  mechanisms.  It  is  also  necessary  to  consider  the  interest  of  protected 
customers to be guaranteed uninterrupted supplies of gas. 

(17) 

(18) 

In order to ensure that demand-reduction measures are implemented in a coordinated 
manner, Member States should establish regular cooperation within each risk group as 
established in Annex I of Regulation (EU) 2017/1938. Member States are free to agree 
on the coordination measures best suited in a given region. The Commission and the 
‘GCG’ should be able to have an overview of the national measures implemented by 
the Member States and share best practices for the coordination of measures within the 
risk  groups.  Member  States  should  also  use  other  bodies  to  coordinate  their  action 
where  appropriate,  such  as  in  meetings  of  the  Director-Generals  of  national  energy 
ministries. 

In order to ensure that the national emergency plans reflect the voluntary or mandatory 
demand reduction set out in this Regulation, the competent authority of each Member 
State  should  take  the  necessary  steps  to  update  the  national  emergency  plan  by  31 
September 2022. The update of the national emergency plan should indicate how the 
measures  proposed  in  the  Communication  “Save  Gas  for  a  Safe  Winter”  of  20  July 
2022  have  been  used.  Given  the  short  timeframe  for  the  update,  the  coordination 
procedures pursuant to Article 8(6) to (11) should not apply. However, Member States 
should  consult  other  Member  States  on  the  update  of  the  emergency  plans.  The 
Commission  should  convene  the  GCG,  the  risk  groups  or  other  relevant  bodies  to 
discuss potential issues related to demand reduction measures. 

(19)  Regular  and  effective  monitoring  and  reporting  are  essential  for  the  assessment  of 
progress  made  by  the  Member  States  in  the  implementation  of  the  voluntary  and 
mandatory  demand  reduction  measures,  and  for  measuring  the  social  and  economic 
impact of the measures as well as the impact on employment. The competent authority 
of  each  Member  State  or  another  entity  designated  by  the  Member  State  should 
monitor  the  demand-reduction  achieved  on  their  territory  and  regularly  report  the 
results to the Commission . The GCG should assist the Commission in the monitoring 
of the demand-reduction obligations. 

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(20)  To prevent significant economic harm for the Union as a whole, it is crucial that each 
single Member State reduces its demand in the alert phase. This will ensure that gas is 
sufficient  for  all,  even  in  winter-times.  The  demand  reduction  across  the  Union  is 
therefore  an  expression  of  the  principle  of  solidarity,  enshrined  in  the  Treaty.  It  is 
therefore  also  warranted  that  the  Commission  supervises  strictly  that  the  mandatory 
demand  reductions  are  carried  out  by  Member  States.  In  case  the  Commission 
identifies a risk that a Member State may not be able to fulfil the mandatory demand 
reduction obligation pursuant to Article 5, the Commission should have the power to 
request  the  Member  State  to  submit  a  plan  setting  out  the  strategy  and  measures  to 
effectively  reach  the  mandatory  demand  reduction  obligation.  The  Member  State 
should take due account of any comments and suggestions of the Commission to the 
plan. 
As  the  solidarity  principle  gives  every  Member  State  the  right  to  be  supported  by 
neighbouring  Member  States  under  certain  circumstances,  Member  States  who  may 
ask for such support should also act in a spirit of solidarity when it comes to reducing 
their  domestic  gas  demand.  Therefore,  when  requesting  a  solidarity  measure  under 
Article 13 of Regulation (EU) 2017/1938, Member States should have implemented all 
appropriate  gas demand  reduction measures.  The Commission  should be empowered 
to  request  the  Member  State  requesting  a  solidarity  measure  to  submit  a  plan  with 
measures  to  achieve  possible  further  gas  demand  reductions.  Due  account  should  be 
taken of any comments the Commission may provide on this plan. 

(21)  The  Commission  should  inform  the  European  Parliament  and  the  Council  regularly 

about the implementation of this Regulation. 

(22)  Considering the imminent danger for the security of gas supply brought about by the 
Russian military aggression against Ukraine, this Regulation should enter into force on 
the day following that of its publication. 

(23)  Based on the information available, the risk of serious disruption of gas supplies to the 
Union is likely to be present for at least the next two winter seasons. Therefore, this 
Regulation  should  be valid for two  years after its entry into  force. At the end of the 
first  year  of  application  of  this  Regulation,  the  Commission  should  report  on  its 
functioning to the Council and, if appropriate, propose to prolong its validity. 

(24)  Since the objectives of this Regulation cannot be sufficiently achieved by the Member 
States, but  rather at  Union level,  the Union may adopt  measures, in  accordance with 
the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In 
accordance with the principle of proportionality set out in that Article, this Regulation 
does not go beyond what is necessary to achieve that objective. 

HAS ADOPTED THIS REGULATION: 

Article 1 

Subject matter and scope 

This Regulation establishes rules to address a situation of severe difficulties in the supply of 
gas, with a view to safeguarding the EU security of gas supply, in a spirit of solidarity. These 
provisions include improved coordination, monitoring and reporting on national gas demand 
reduction  measures  and  the  possibility  for  the  Commission  to  declare  a  Union  alert  as  a 
specific crisis level, triggering a compulsory Union-wide demand reduction obligation. 

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Article 2 

Definitions 

For the purposes of this Regulation, the following definitions apply: 

(1) 

(2) 

‘competent  authority’  means  a  national  governmental  authority  or  a  national 
regulatory authority designated by a Member State to ensure the implementation of 
the measures provided for in Regulation (EU) 2017/1938. 

“Union  alert”  means  a  Union-specific  crisis  level  triggering  a  mandatory  demand 
reduction and which is not related to any of the crisis levels pursuant to Article 11(1) 
of Regulation (EU) 2017/1938. 

Article 3 

Voluntary demand reduction 

Member States shall use their best efforts to reduce their national gas consumption between 1 
August  2022  and  31  March  2023  at  least  by  15%  compared  to  their  average  consumption 
between 1 August and 31 March during the five years preceding the entry into force of this 
Regulation (‘voluntary demand reduction’). Articles 6, 7 and 8 shall apply to those voluntary 
demand reduction measures. 

1. 

2. 

3. 

Article 4 

Declaration of a Union alert by the Commission  

The Commission may declare a Union alert only when there is a substantial risk of a 
severe gas supply shortage or an exceptionally high demand of gas occurs, for which 
the  measures  in  Article  3,  as  reported  on  according  to  Article  8,  are  not  sufficient, 
and  which  results  in  a  significant  deterioration  of  the  gas  supply  situation  in  the 
Union, but where the market is still able to manage that disruption without the need 
to resort to non-market based measures. 

The Commission may, after consultation of the relevant risk groups, as established in 
Annex I of Regulation (EU) 2017/1938 and the GCG taking into account any views 
expressed by the Member States in that context, declare the Union alert  on its own 
initiative or following a the request of at least three competent authorities that have 
declared  an  alert  at  national  level  pursuant  to  Article  11(1)  of  Regulation  (EU) 
2017/1938, or on its own initiative. 

When the Commission considers, following an assessment, that the underlying basis 
for the Union alert no longer justifies the declaration of a Union alert, it shall,  after 
consultation of the relevant risk groups, as established in Annex I to Regulation (EU) 
2017/1938  and  the  GCG,  taking  into  account  any  views  expressed  by  the  Member 
States  in  that  context,  declare  an  end  to  the  Union  alert  and  to  the  obligations 
pursuant to Article 5. 

Article 5 

Mandatory demand reduction in case of a Union alert 

1. 

Where  the  Commission  declares  a  Union  alert,  each  Member  State  shall  reduce  its 
natural gas consumption in accordance with the methodology set out in paragraph 2 
(‘mandatory demand reduction’). 

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2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

For  the  purpose  of  mandatory  demand  reduction,  for  as  long  as  the  Union  alert  is 
declared,  overall  consumption  of  natural  gas  in  each  Member  State  over  a  period 
from  1 August  of each  year until  31 March of the following  year (‘implementation 
period’) shall be reduced by at least 15% compared to that Member State’s average 
consumption over the period between 1 August and 31 March (‘comparison period’) 
during  the  five  consecutive  years  preceding  the  date  of  entry  into  force  of  this 
Regulation. Any voluntary demand reductions achieved by Member States during the 
implementation period before the alert was declared shall be taken into account for 
the purpose of the mandatory demand reduction. 

Member States may request to limit the mandatory demand reduction by a maximum 
of  5%,  provided  they  can  demonstrate  that  they  cannot,  due  to  no  or  limited 
interconnection with other Member States, substantially contribute to increasing the 
direct or indirect supply of gas to other Member States. 

Member  States  who  request  a  derogation  from  the  mandatory  demand  reduction 
pursuant  to  paragraph  3  shall  submit  evidence  that  their  interconnector  capacities 
with other Member States or their domestic LNG infrastructure are used to re-direct 
gas to other Member States to the utmost extent. 

Before  deciding  on  the  request  for  a  reduced  mandatory  demand  reduction,  the 
Commission  shall  consult  the  GCG,  the  risk  groups  and,  as  appropriate,  other 
relevant bodies. 

The  Commission  shall  decide  on  the  request  at  the  latest  within  two  months  after 
having received all the relevant information from the Member State. 

Articles 6, 7 and 8 shall apply to mandatory demand reduction measures. 

Article 6 

Measures to achieve the demand reduction  

Member States shall be  free to  choose the appropriate measures to  reduce demand. 
The measures shall be clearly defined, transparent, proportionate, non-discriminatory 
and verifiable. When selecting the measures, Member States shall take into account 
the  principles  set  out  in  Regulation  (EU)  2017/1938.  The  measures  shall  in 
particular:  

(a) 

not unduly distort competition or the proper functioning of the internal market 
in gas, or endanger the security of gas supply of other Member States or of the 
Union; 

(b)  be market-based; 

(c) 

ensure  uninterrupted  supply  of  gas  to  protected  customers  or  other  customer 
groups pursuant to Articles 2(5) and 7 of Regulation (EU) 2017/1938. 

When  taking  demand-reduction  measures,  Member  States  shall  prioritise  the 
measures affecting non-protected customers on the basis of objective and transparent 
criteria which shall take  into account  their economic importance as well as, among 
others, the following elements: 

(a) 

(b) 

the impact of a disruption on supply chains that are critical for society;  

the possible negative impacts in other Member States, in particular on supply 
chains of downstream sectors that are critical for society; 

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3. 

1. 

2. 

3. 

1. 

2. 

(c) 

(d) 

the potential long-lasting damage to industrial installations; 

the possibilities to reduce consumption and substitute products in the Union. 

When  deciding  the  demand-reduction  measures,  the  Member  States  shall  consider 
measures  to  reduce  gas  consumed  in  the  electricity  sector,  measures  to  encourage 
fuel  switch  in  the  industry,  national  awareness  raising  campaigns,  and  targeted 
obligations  to  reduce  heating  and  cooling,  and  market-based  measures  to  promote 
switching to other fuels and reduce consumption by industry. 

Article 7 

Coordination of demand reduction measures 

To  ensure  appropriate  coordination  of  voluntary  and  mandatory  demand  reduction 
measures  pursuant  to  Articles  3  and  5,  Member  States  shall  cooperate  with  each 
other within each of the relevant risk groups. 

The competent authority of each Member State shall update its national emergency 
plan  established  pursuant  to  Article  8  of  Regulation  (EU)  2017/1938  by  [31 
September 2022] at the latest, to reflect voluntary demand reductions. Each Member 
State  shall  also  update  its  national  emergency  plan,  as  appropriate,  in  case  of  a 
declaration of a Union alert pursuant to Article 4. Articles 8(6) to (10) of Regulation 
(EU)  2017/1938  shall  not  apply  to  the  updates  of  the  national  emergency  plans 
pursuant to this paragraph. 

Member  States  shall  consult  the  Commission  and  the  relevant  risk  groups  before 
adopting the revised emergency plans. The Commission may call for meetings of the 
GCG and the risks groups taking into account any views expressed by the Member 
States  in  that  context,  to  discuss  issues  related  to  national  demand  reduction 
measures. 

Article 8 

Monitoring and enforcement 

The competent authority of each Member State shall monitor the implementation of 
the  demand-reduction  measures  on  their  territory.  Member  States  shall  report  on 
the 
demand-reduction  measures 
Commission every two months and not later than by the 15th of the following month. 
The GCG  and the risk groups shall assist  the Commission  in the monitoring of the 
voluntary and mandatory demand reduction. 

taken  and  demand  reduction  achieved 

to 

Where  the  Commission  identifies,  on  the  basis  of  the  reported  demand  reduction 
figures, a risk that a Member State will not be able to fulfil the mandatory demand 
reduction obligation pursuant to Article 5, the Commission shall request the Member 
State  to  submit  a  plan  setting  out  a  strategy  and  measures  to  effectively  reach  the 
demand  reduction  obligation.  The  Commission  shall  also  request  a  Member  State 
requesting a solidarity measure pursuant to Article 13 of Regulation (EU) 2017/1938 
to submit a plan setting out the strategy and measures to achieve possible further gas 
demand  reductions,  in  line  with  Article  13(3)(b)  of  Regulation  (EU)  2017/1938.  In 
both cases, the Commission shall, issue an opinion with comments and suggestions 
on the submitted plans of which the Member State shall take due account and inform 
the Council of its opinion. 

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3. 

The  Commission  shall  inform  the  European  Parliament  and  the  Council  regularly 
about the implementation of this Regulation. 

Article 9 

Entry into force and application  

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  on  the 
Official Journal of the European Union. 

It shall apply for a period of two years from its entry into force. 

By 1 August 2023 at the latest, the Commission shall carry out a review of this Regulation in 
view  of  the  general  situation  of  gas  supply  to  the  Union  and  present  a  report  on  the  main 
findings of that review to the Council. The Commission may, based on that report, propose to 
prolong or shorten the validity of this Regulation. 

This Regulation shall be binding in its entirety and directly applicable in the Member States in 
accordance with the Treaties. 

Done at Brussels, 

For the Council 
The President 

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