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 Energy Emergency - preparing, purchasing and protecting the EU together
Date: 2022-10-18
Institutions: European Commission, Secretariat-General
Subjects: EU energy policy, critical infrastructure security, electrical energy, energy consumption, energy crisis, energy saving, natural gas, price of energy, security of supply, storage of hydrocarbons

EN 

  EN 

   EUROPEAN COMMISSION  Strasbourg, 18.10.2022  COM(2022) 553 final  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 Energy Emergency - preparing, purchasing and protecting the EU together  
 
 
INTRODUCTION 

Russia’s  unjustified  military  aggression  against  Ukraine  and  its  weaponisation  of  energy  have 
provoked  an  unprecedented  energy  crisis.  They  have  caused  a  sharp  rise  in  energy  prices  and 
compromised our security  of energy  supply. Russia’s decision to cut-off  of supply through the 
Nord Stream1 has brought this crisis to a new stage. 

The European Union has acted in unity. The plan and regulation to reduce gas demand1, as well as 
emergency measures to intervene on energy markets2, as proposed by the Commission, are having 
an impact for this winter. The Union is reducing now its gas consumption since the start of the 
Russian aggression3. The phasing out of Russian fuels has accelerated, down to 9% of our pipeline 
gas supply in September 2022 and 14% when including LNG, compared to a 41% share of Russian 
pipeline  gas  and  45%  when  including  LNG  in  2021.  The  intensified  cooperation  with  reliable 
supply partners has compensated for the sharp decrease in Russian gas imports. Our gas storage 
filling is above 91% by mid-October. We are now in a stronger position than a few months ago.   

Despite  these  actions,  the  situation  remains  extremely  challenging  at  the  onset  of  this  winter. 
European consumers and businesses continue to be exposed to prices that are too high and volatile. 
Unpredictable events, like the sabotage of pipelines, may still further disrupt our security of supply. 
Tensions on gas markets are likely to persist, also beyond this winter.  

The European Council in its informal meeting of 6 October in Prague, the informal meeting of 
Energy ministers of 12 October and the European Parliament in its resolution on the EU’s response 
to the increase in energy prices in Europe4 have asked the Commission to propose measures to 
coordinate  solidarity  efforts,  secure  the  energy  supply,  stabilise  price  levels  and  support 
households and companies facing high energy prices.  

In her letter to the Heads of State and Government, President von der Leyen has set out a roadmap 
for  the  way  forward,  based  on  four  sets  of  actions:  dampening  the  price  we  pay  for  our  gas 
imports without endangering our security of supply, working together with Member States to limit 
prices on the natural gas market, limiting the impact of gas prices on electricity prices, preserving 
a level playing field in the single market and accelerating our transition to energy independence. 
Action is also urgently needed to step up the EU’s capacity to stand up to potential attacks against 
critical infrastructure and alongside this package of energy-related measures, the Commission is 
presenting  a  proposal  for  a  Council  recommendation  on  strengthening  the  resilience  of  critical 
infrastructure.  

Today, the Commission is putting forward an enhanced framework for action to implement this 
roadmap and respond to the energy challenges this winter as well as prepare for the next winter.  

1 EUR-Lex - 52022DC0360 - EN - EUR-Lex (europa.eu) 
2 EUR-Lex - 52022PC0473 - EN - EUR-Lex (europa.eu)  
3 To be confirmed by the reporting from Member States on the implementation of the Gas Saving Regulation due by 
15 October 
4 European Parliament resolution of 5 October 2022 on the EU’s response to the increase in energy prices in Europe 
(2022/2830(RSP)) 

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Europe can build on its strengths by leveraging the single market to make joint purchasing a reality 
and keeping market prices in check, including by putting a limit to excessive price spikes as well 
as by making the best use of existing infrastructure to ensure that gas flows where it is most needed.  

This is the moment to act, for this winter and beyond. The new measures on energy proposed today 
are  exceptional  and  temporary.  They  respond  to  the  crisis  at  hand  and  provide  a  solution  for 
immediate relief. But they lay the basis for more structural measures that will further strengthen 
the resilience and the efficiency of the Energy Union.  

Building on today’s measures, the Commission will put forward ordinary legislative proposals for 
the  consideration  of  co-legislators,  who  have  a  crucial  role  to  play  to  ensure  that  Europe  will 
benefit from more secure, affordable and clean energy beyond the current crisis. One of these will 
address the reform of the electricity market design.  

In the meantime, the Commission will engage closely with the European Parliament by setting up 
a contact group for a real-time dialogue on the emergency response to the energy crisis. 

1.  BUYING GAS TOGETHER AND SAFEGUARDING OUR SECURITY OF SUPPLY 

While  the  EU  will  be  able  to  withstand  this  winter,  we  need  to  prepare  for  possible  further 
disruption, and lay a sound foundation for the following winter. Current projections show that a 
too low storage level in March 2023 may lead to a precarious situation in the winter 2023-2024. 
While increased gas savings will allow the Union to reduce its exposure to high import prices, it 
should also use its market leverage to secure gas at globally competitive prices.  

The Commission has intensified its links with reliable gas and LNG suppliers. It has concluded 
agreements with the US, Canada, Norway, Azerbaijan, Egypt and Israel. The EU and Norway have 
set  up  in  October  a  task  force  to  stabilise  energy  markets.  The  EU-Algeria  Energy  Dialogue 
resumed in October. The Commission will continue coordinating and intensifying the cooperation 
with reliable partners. 

The EU will continue to engage with its partners in line with the Joint Communication on “EU 
external energy engagement in a changing world”5, we are also stepping up our engagement and 
solidarity  with  the  countries  in  the  Western  Balkan  and  the  Eastern  partnership,  our  closest 
neighbours. The EU Energy Platform is open to our partners of the Energy Community. Earlier 
this  year,  the  electricity  grids  of  Ukraine and  Moldova  were  synchronised  with  the  continental 
grid.  And  earlier  this  month,  a  new  gas  interconnector  was  inaugurated  between  Bulgaria  and 
Greece, which will also serve North Macedonia and Serbia. As the entire region is facing a difficult 
winter  because  of  Russia’s  energy  war,  such  efforts  should  accelerate,  to  further  integrate  the 
region into our Energy Union.  

With the support of the EU Energy Platform set up in April 2022, the Commission will continue 
deepening its long-term cooperation with and support of all reliable suppliers in order to increase 
global production of gas from existing and new fields, while replacing Russian gas and ensure that 

5 JOIN(2022) 23 final 

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gas, notably LNG, continues flowing to Europe. It is also laying the ground for partnerships on 
hydrogen  in  order  to  reach  the  REPowerEU  objective  of  10  million  tons  of  green  hydrogen 
imported  in  2030.  Discussions  with  international  partners  also  cover  the  price  of  the  gas  they 
supply to Europe as part of mutually beneficial agreements. 

Today, we propose to equip the EU with the legal tools to jointly purchase gas. The Platform 
should first  and  foremost  coordinate the filling of gas storage facilities, in  line  with  our filling 
targets.  For  the  next  winters  until  2025,  including  the  2023-2024  one,  a  gap  of  uncontracted 
demand of up to 100 bcm per year is estimated in case of a full interruption of Russian supplies. 
If storage supplies are depleted at the end of this winter, their filling to 90% by November 2023 as 
required by the EU Gas Storage Regulation may be more difficult than for this winter.  

To enable joint purchasing, especially for the filling of gas storages, the Commission proposes: 

  Demand aggregation at EU and Energy Community partners level, grouping together gas 

import needs and seeking offers on the market on that basis; 

  A mandatory participation by Member States in the EU demand aggregation for at least 

15% of their storage filling obligations; 

  A voluntary purchasing system, allowing companies to form a European gas purchasing 
consortium. The Commission stands ready to accompany companies in the design of the 
consortium and rapidly issue a decision on inapplicability of Articles 101 and/or 102 TFEU 
if relevant substantive conditions are respected.  

Joint purchasing will facilitate a more equal access to new suppliers and international markets and 
give  more  negotiating  weight  to  European  importers.  Russian  supply  sources  will  be  excluded 
from participation in the Platform. 

The joint purchasing will deliver its full benefits only if the Commission and Member States ensure 
transparency to the EU Energy Platform of intended and concluded gas supply purchases across 
the Union, in order to assess whether the objectives of security of supply and energy solidarity are 
met. A strong coordination with and among Member States via-à-vis third countries via the Energy 
Platform will ensure the Union’s collective weight is more effective. It will prevent Member States 
and gas importers from outbidding each other and driving up prices.  

The availability of capacities in LNG terminals and pipelines will be a key factor of success in 
joint  purchasing.  This  is  even  more  important  at  a  time  of  emergency,  where  congestion  of 
pipelines and terminals causes bottlenecks in the supply of gas, including for the filling of storages. 
Therefore, the proposal includes rules on transparency of unused long-term capacity of terminals 
and pipelines in case of short-term congestion. 

Solidarity and ensuring gas flows to where it is needed 

The EU has strengthened its tools for savings in gas and electricity. However today, we need to 
use the agreed regulations to their fullest extent in order to reach our demand reduction targets. 
This will help us withstand further gas supply disruption, and ease pressure on international gas 

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markets,  and  therefore  on  prices.  The  Commission  will  closely  monitor  demand  reduction 
measures, their distributional impacts, ensuring fairness in efforts and contributions from all parts 
of  the  economy  and  society,  and  stands  ready  to  trigger  the  EU  Alert  or  even  review  the  gas 
demand  reduction  targets  if  voluntary  demand  reduction  measures  prove  insufficient  to  ensure 
sufficient gas supplies over the winter.  

To  reinforce  preparedness  for  possible  emergencies  over  the  winter  period,  the  Commission 
proposes measures allowing Member States to exceptionally reduce non-essential consumption 
such as outdoor heating to ensure that gas is being supplied to other essential sectors, services and 
industries.  This  should  under  no  circumstances  affect  the  consumption  of  households  that  are 
vulnerable customers.  

Solidarity is the cornerstone of the Union, and it underpins the efficiency of its action. Five years 
after agreeing on the Security of Supply Regulation, only 6 bilateral solidarity agreements between 
Member States have been signed, out of the 40 possible ones. This is too slow. The Commission 
proposes to boost the Union’s ability to react swiftly in case of emergency by setting default rules 
on solidarity, which will ensure that a Member State facing an emergency will receive gas from 
the others in exchange for fair compensation. The proposal would also be extended to cover not 
just Member States that are directly connected or via a third country, but to Member States with 
LNG  facilities  even  when  not  directly  connected.  The  European  single  market  for  gas  and 
uninterrupted gas trade within the Union are a prerequisite for a safe winter for all Europeans this 
year and next.  

2.  ADDRESSING HIGH ENERGY PRICES  

Although  wholesale  prices  have  decreased  since  the  peak  of  summer  2022,  they  remain 
unsustainably high for a growing number of Europeans. More and more citizens are subject to, or 
at risk of energy poverty. Vulnerable consumers are the most impacted, but both businesses and 
households,  including  middle-income  households,  are  increasingly  burdened  by  costly  gas  and 
electricity bills.  

This requires  action, in  particular  for  gas,  given  its weight  for households and  industry and its 
impact on electricity prices.  

Gas  prices  on  the  main  European  gas  exchange,  the  Title  Transfer  Facility  (TTF)  reach 
unprecedented  levels  and  are  very  volatile.  While  this  reflects  the  specific  situation  of 
Northwestern Europe, due to local shortages and infrastructure bottlenecks, the TTF often impacts 
price levels in long-term contracts outside of Northwestern Europe and many LNG transactions. 
We need price indexes that reflect the actual conditions of the market. 

The  Commission  therefore  proposes  developing  a  new  complementary  price  benchmark  for 
LNG. An LNG-based benchmark would be a more accurate basis for LNG transactions, offering 
a fairer and more transparent price index. The European Union Agency for the Cooperation of 
Energy Regulators (ACER) should collect the information necessary to create this new benchmark 

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by the end of 2022 and the index should become available in time for the next filling season early 
2023. 

Moreover, in order to respond to the ongoing energy crisis, the Commission proposes to put in 
place a mechanism to limit prices via the main European gas exchange, the TTF, to be triggered 
when needed. The price correction mechanism would establish, on a temporary basis, a dynamic 
price limit for transactions on the TTF. This will help avoid extreme volatility and excessive prices. 
The Commission  put this  already  forward  as  an  option in  March 2022. Today,  considering the 
unprecedented nature of the energy crisis, and building on the framework for demand reduction 
measures now established, the time has come to put in place such mechanism.  

In  order  to  limit  intra-day  volatility,  the  Commission  proposes  introducing  a  new  temporary 
intra-day price spike collar mechanism to avoid excessive price volatility and prevent extreme 
price spikes in prices on energy derivative market. Such a mechanism will ensure sounder price 
formation  mechanism  in  those  markets,  protecting  EU  energy  operators  from  large  intraday 
upward price movements and helping them secure their energy supply in the medium term. 

The Commission will develop with Member States ways to limit the impact of high gas prices 
on electricity prices.  Introducing  a price cap for gas that is  used for electricity  generation has 
brought down prices in Spain and Portugal. It merits to be considered for introduction at EU level, 
if some open questions  can be satisfactorily  addressed. EU Member States are diverse when it 
comes to their energy mixes, connections and power systems. A solution needs to be designed that 
works for all of them and that prevents increasing gas consumption, addresses the unequal financial 
impact across Member States and manages flows beyond the EU’s borders.  

Lastly, the Commission supports the new Task Force which has been set up by ACER and the 
European Securities and Markets Authority (ESMA), together with national energy and financial 
market supervisors, to closely monitor developments in the energy market. This joint action will 
help track trading patterns and dynamics across the various segments of the gas and electricity 
markets. It will reinforce market surveillance and any necessary enforcement actions by market 
supervisors.  

3.  MITIGATING THE IMPACT OF HIGH GAS PRICES  

In addition to its action on prices, the Commission and Member States have put together financial 
and other measures to shield consumers and businesses hit by the external shock on energy prices. 
The Single Market, which helped the Union tackle previous crises, must be preserved and a high 
level of employment must be safeguarded. The Commission will closely monitor developments in 
this regard. It is crucial that common shared EU solutions are pursued avoiding piecemeal national 
solutions dependent on the different fiscal space of Member States. 

The Commission intends to  give to Member State more leeway to support their companies, by 
amending the Temporary Crisis Framework while preserving the level playing field. The time 
limits for State support will be extended, and in order to keep our short-term action in line with 
our long-term goals, new options will be offered enabling Member States to support companies 

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who  would  reduce  their  electricity  demand.  This  framework  will  give  more  opportunities  to 
Member  States  to  support  those  companies  which  most  need  it,  while  simplifying  certain 
requirements and maintaining a level playing field within the EU. The Commission will ensure 
that all requests by Member States for temporary support are dealt with quickly and consistently. 

Derivative markets are essential for energy companies to continue their activities. However, price 
spikes and extreme volatility in  the energy derivatives markets  have led to  liquidity issues for 
energy companies. It is of utmost importance to give our energy companies additional margin of 
maneuver so that they can secure supplies and purchases of energy commodities in the medium 
term. This is why the Commission, in line with the advice of the European Securities and Markets 
Authority (ESMA), is adopting two delegated regulations to ease the increased liquidity pressure 
on non-financial market participants resulting from the rise in the margin requirements.  

They will: 

Increase the clearing threshold for non-financial counterparties to EUR 4 billion6. 
 
Below  this  threshold,  non-financial  counterparties  will  not  be  subject  to  margin 
requirements on their over-the-counter energy derivatives.  
  Broaden the list of eligible assets that central counterparties may accept to cover 
their risks7 for one year. This will allow non-financial companies8 as well as all market 
participants to use extra types of guarantees under specific conditions, for meeting their 
margin calls9. 

The  Commission  also  proposes  to  make  the  cohesion  policy  framework  2014-2020  more 
flexible,  helping  Member  States  and  regions  through  targeted,  temporary  and  exceptional 
measures to face the challenges resulting from the current energy crisis, up to a maximum of 10% 
of Member State allocations amounting to close to EUR 40 billion. Amounts shall be paid subject 
to available funding under the ceilings of the Multiannual Financial Framework. This will provide 
support  to  SMEs  particularly  affected  by  energy  price  increases,  help  address  energy  poverty 
through support to vulnerable households and provide support for access to the labour market by 
maintaining jobs of employees and of the self-employed, through short-time work and equivalent 
schemes.  

Addressing  the  energy  crisis  requires  protecting  the  fundamentals  of  our  economy,  and  in 
particular safeguarding our single market and a high level of employment. A united and common 
European approach is of paramount importance to address the serious risk of fragmentation of the 
Union. 

6  Commission  Delegated  Regulation  No  (EU)  XX  supplementing  Regulation  (EU)  No  648/2012  of 
the European  Parliament and of the Council (EMIR) with regard to the value of the clearing threshold for commodity 
derivatives 
7 Commission Delegated Regulation (EU) No XX amending the regulatory technical standards laid down in Delegated 
Regulation (EU) No 153/2013 as regards temporary emergency measures on collateral requirements 
8 Acting as clearing members. 
9 In its public Q&As ESMA will also confirm that other assets, such as short-term debt instruments issued by 
companies or EU bonds, can be used as collateral in meeting margin calls. 

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Concretely,  accelerating  the  transition  away  from  Russian  fossil  fuels  calls  for  reassessing  the 
measures and transition pace proposed in RePowerEU. The Commission will therefore carry out 
an  assessment  of  the  needs  for  REPowerEU.  This  assessment  will  cover  investments  in  cross-
border infrastructure, including critical pan-European interconnections10, energy storage, energy 
efficiency  and  renewables  that  are  needed  to  speed  up  the  clean  energy  transition  and  avoid 
fragmentation in the single market. It will also consider investment absorption capacity. Its results 
will form the basis for Commission proposals to add to the EU financial firepower for REPowerEU 
so as to ensure competitiveness of European industry and energy independence across the EU. 

4.  PROTECTING AND OPTIMISING INFRASTRUCTURE 

Equipping  the  EU  to  deal  with  the  evolving  threat  landscape  requires  constant  vigilance  and 
adaptation.  Russia’s  war  of  aggression  against  Ukraine  has  brought  a  new  set  of  threats,  often 
combined as a hybrid attack. One of these is the risk to critical infrastructure of European interest. 
This has become blatantly obvious with the apparent sabotage of the Nord Stream gas pipelines.  

The Commission has already announced action to improve the security of critical infrastructures 
following  the  pipeline  explosions.  The  Commission  is  therefore  today  proposing  a  Council 
recommendation to intensify the EU’s support to increasing the resilience of critical infrastructure, 
and to ensure an EU-level coordination, in terms of preparedness and response, as well as enhanced 
cooperation for infrastructure that is of cross-border interest. This proposal aims to maximise and 
accelerate work to protect those assets, facilities, and systems that are necessary for the functioning 
of the economy and to provide essential services in the internal market, which citizens rely on, as 
well  as  to  mitigate  the  impact  of  any  attack  by  ensuring  the  swiftest  possible  recovery.  The 
Commission will work with Member States with a view to stress-test their critical infrastructure, 
starting  with  the  energy  sector  and  then  followed  by  other  high-risk  sectors  such  as 
communication,  transport  and  space.  The  stress  test  exercise  will  be  complemented  by  the 
production of a Blueprint on critical infrastructure incidents and crises, done in consultation with 
Member States and with the support of relevant Union agencies. The aim of the Blueprint is to 
describe and set out the objectives and modes of cooperation between the Member States and EU 
institutions, bodies, offices and agencies in responding to incidents against critical infrastructure, 
in particular where these entail significant disruptions of the provision of essential services for the 
internal  market.  Furthermore,  the  Commission  and  the  High  Representative  will  strengthen 
cooperation key partners on the resilience of critical infrastructure as well as with NATO through 
the EU-NATO structured dialogue and a Task Force will be set up with NATO for this purpose.  

10  Projects completing  internal  market  in  energy  and  those with  a  strong  cross-border  dimension  should  be 
privileged,  for  instance  the  critical  connection  between  Portugal,  Spain  and  France  and   North-South  Electricity 
Interconnections in Central Eastern and South Europe. Supported projects should improve the interconnection of 
the European gas and electricity networks, energy storage and building hydrogen ready infrastructure.   

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In parallel, to optimise the use of gas and LNG infrastructures, the Commission proposes new tools 
to provide more information on the available infrastructure capacity, and new mechanisms to 
make sure that no company can book capacity and leave it unused. Such mechanisms already exist, 
but the reallocation of capacities can take several months – our proposal aims at making a rapid 
reaction possible, notably in case of short-term congestion. Well-functioning infrastructures are 
particularly important  for landlocked Member States, who do not  have an immediate access  to 
LNG and therefore have less obvious means to diversify their supply.  

We also need to shift gear and accelerate renewable energy production in the EU and reach our 
long-term climate goals. Permitting procedures for renewable projects are still too long. It is 
crucial to ensure that new projects do not threaten biodiversity and are well accepted by citizens, 
but  there  is  scope  to  cut  processes  while  meeting  these  requirements.  In  the  framework  of 
REPowerEU, the Commission already made proposals to accelerate permitting. Given the urgency 
in ensuring sufficient security of supply and in accelerating the deployment of renewable energy, 
the Commission urges the legislators to rapidly reach agreement on these proposals. It stands ready 
to make a dedicated proposal to directly simplify and shorten the administrative permit-granting 
processes applicable to certain renewable energy projects in a coordinated and harmonised manner 
across the EU.  

CONCLUSION: A STRONGER ENERGY UNION 

The magnitude of the current energy crisis is unprecedented. It requires a common extraordinary 
emergency response in the spirit of solidarity. The EU has already taken decisive steps and stands 
ready to go further. 

Over the last year, the Commission has put forward and implemented several initiatives, gradually 
moving from enabling action at national level to setting up an integrated security of supply strategy 
as well as, more recently, emergency measures aiming to decouple electricity bills of consumers 
and  companies  from  the  price  of  gas,  to  coordinate  reduction  of  electricity  demand,  improve 
Member States toolbox to protect consumers and companies from high energy prices and introduce 
a solidarity contribution for the fossil sector.  

The new set of emergency measures goes one step further in solidarity and integration, putting the 
weight of our single market to the service of our security of supply, affordability and sustainability 
of energy and access to essential services for all.  

The Commission stands ready to engage immediately with the Council and support it in making 
fast progress starting with the Energy Council on 25 October.  

Solidarity and joint actions are the most efficient response to this crisis, and by we standing united, 
the EU and its Member States will overcome the crisis and forge a genuine competitive Energy 
Union.  

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Measures proposed in the package  

ANNEX 

BUYING GAS TOGETHER AND SAFEGUARDING OUR SECURITY OF SUPPLY  

Coordinating and intensifying energy supply negotiations with all reliable partners  

Leverage  European  market  power  through  a  joint  purchasing  platform  to  obtain  additional 
supplies for storage filling (Article 122 proposal) 

Commission proposal to boost the Union’s ability to react swiftly in case of emergency by setting 
default rules on solidarity (Article 122 proposal) 

ADDRESSING HIGH ENERGY PRICES  

The Commission proposes the development of a specific price benchmark for LNG by the 
end of 2022 (Article 122 proposal)  

The Commission proposes to put in place a mechanism to cap prices on the main European 
gas exchange 

The Commission proposes a new temporary intra-day price spike collar mechanism to avoid 
excessive volatility and slow down the increase in prices in energy derivatives markets  

MITIGATING THE IMPACT OF HIGH GAS PRICES 

The Commission will amend the Temporary Crisis Framework  for State Aid before the 
end of October 
The Commission, in cooperation with the European Securities and Markets Authority, proposes 
two delegated regulations to ease the increased liquidity pressure on non-financial market 
participants resulting from the rise in the margin requirements  

Additional funding through the cohesion policy framework (Common Provisions Regulation 
amendment) as well as through REPowerEU  

PROTECTING AND OPTIMISING INFRASTRUCTURE  

Council Recommendation on critical infrastructure  

Commission proposal to use new tools to provide more transparency about capacity (Article 
122 proposal)  
Moving faster on renewables production by accelerating permitting procedures  

9