Proposal for a COUNCIL REGULATION amending Regulation (EU) 2022/1369 as regards prolonging the demand reduction period for reduction measures for gas and reinforcing the reporting and monitoring of their implementation
Date: 2023-03-20
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, 20.3.2023  COM(2023) 174 final 2023/0087 (NLE)  Proposal for a COUNCIL REGULATION amending Regulation (EU) 2022/1369 as regards prolonging the demand reduction period for reduction measures for gas and reinforcing the reporting and monitoring of their implementation  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Over the past  year, supplies of gas  to the EU by Russia have been disrupted as a deliberate 
attempt  to  use  energy  as  a  political  weapon.  Russia  has  been  for  many  years  the  main  gas 
supplier  of  the  EU.  Historically,  the  EU  relied  on  Russia  for  more  than  40%  of  its  gas 
supplies.  The  supply  of  gas  has  continuously  decreased  since  February  2022.  The  pipeline 
flows  of  gas  from  Russia  were  less  than  10%  of  the  EU’s  gas  imports  in  January  2023. 
Twelve Member States have activated the first or second crisis level pursuant to the common 
EU classification, as foreseen by the Gas Security of Supply Regulation (EU) 2017/1938. This 
supply shock has already had significant impacts on the price level and volatility of gas and 
electricity, on inflation, on the overall EU financial and macroeconomic stability, and on all 
citizens. 

In the meantime, while the EU has actively diversified supply sources to compensate for the 
strong  decrease  of  Russian  gas  imports,  there  is  a  realistic  prospect  of  a  full  and  protracted 
disruption of the remaining gas from Russia at any moment. The EU must be prepared for it 
and take pre-emptive actions to mitigate the impacts of possible major supply disruptions. A 
great  majority  of  EU  citizens  (84%)  agree  that  the  EU  should  reduce  its  dependency  on 
Russian  sources  of  energy  as  soon  as  possible.  In  addition,  81%  say  that  they  have  taken 
action to reduce their own energy consumption (1). 

For  this  reason,  the  Commission  proposed  on  20  July  2022  a  Council  Regulation  on 
coordinated demand reduction measures for gas, which was ultimately adopted by Council on 
5 August 2022 as Regulation (EU) 2022/1369. In recent months, Member States have worked 
diligently and have adopted measures aiming to reduce their respective gas demand by 15%, 
as  foreseen  by  the  aforementioned  regulation.  This  has  resulted  in  effective  gas  demand 
reductions across the EU by 19% between August 2022 and January 2023. 

Despite  the  demand  reduction  achieved  and  diversification  of  supply,  severe  difficulties 
persist  in  the  supply  of  energy,  which  can  affect  the  competitiveness  of  the  EU  and  the 
economic  general  situation.  The  risks  include  a  possible  rebound  of  LNG  demand  in  Asia 
which can reduce the availability of gas on the global market, weather conditions which can 
affect hydropower storage and nuclear production and require a higher recourse to gas-fired 
power  generation  and  some  further  gas  supply  disruptions,  which  can  affect  the  filling  of 
underground  gas  storage  facilities  required  for  a  safer  winter  2023-2024.  Furthermore, 
contrary to the preceding filling season the 2023 storage filling season cannot count on the 60 
bcm of Russian pipeline gas that was still imported into the EU in 2022. 

In its report of 12 December 2022, the International Energy Agency estimates that a shortage 
of  gas  in  2023  could  occur,  unless  the  measures  already  undertaken  in  the  Union  are 
supplemented  by  additional  actions  to  replace  or  save  gas.  In  addition,  the  Commission 
prepared an accompanying report on the review of Regulation (EU) 2022/1369 following its 

1 

https://europa.eu/eurobarometer/surveys/detail/2872 

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Article 9 analysing the demand reduction achieved, the risks and possible scenarios of supply 
and  shortage  until  the  end  of  the  next  winter2.  The  findings  of  the  report  showed  that  a 
continued demand reduction of 15% until the end of March 2024 is necessary to ensure that 
Member  States  can  comply  with  the  storage  target  of  90%  set  out  by  Regulation  (EU) 
2022/1032,  and to  ensure the supply and demand adequacy for the winter 2023/24  which is 
imperative  for  security  of  gas  supply.  Without  continued  demand  reduction,  gas  storages 
would be depleted  at  the end of the winter 2023-2024, leading to  possible gas  shortage and 
disruptions.  

The  report  based  on  Article  9  furthermore  shows  that  only  a  prolongation  of  12  months 
ensures sufficient storage filling over the summer. Scenarios with  shorter demand reduction 
periods would be insufficient to ensure security of supply at the end of winter 2023-2024. In 
contrast, an extension for a reduction period from August to March would leave insufficient 
time  to  fill  storages  at  the  appropriate  90%  level,  and  lead  to  serious  security-of-supply 
difficulties  towards  the  end  of  next  winter.  Cold  weather  alone  would  almost  fully  deplete 
storages  by  31  March  2024.  Alternatively,  an  extension  from  April  to  October  would  see 
storages almost completely depleted by 31 March 2024, even without cold temperatures and 
without  any  of  the  other  downside  risks  materialising  that  are  further  analysed  in  the 
accompanying Commission Staff Working Document. In other words, extensions shorter than 
12  months  may  lead  to  panic  buys,  European  actors  outbidding  each  other,  high  prices  and 
possible shortages. 

The  longer  period  of  12  months  from  1  April  2023  to  31  March  2024  would  reduce  the 
possibility of price spikes and therefore limit the cost of gas purchases for Member States for 
the  same  volumes.  Furthermore,  an  extension  with  a  12-month  reduction  period  provides 
more  flexibility  to  cater  for  the  different  characteristics  between  Member  States.  Whereas 
some Member States find it easier to reduce demand in summer (frontloading), others find it 
easier to reduce demand in winter (backloading). A shorter reduction period would not allow 
for this flexibility. In addition, a 12-month reduction period would allow flexibility between 
sectors: since residential demand is low in summer, an extension from April to October would 
put  the  burden  disproportionately  on  industry  and  the  less  flexible  power  sector,  which  is 
dependent on the availability of alternative power sources.  

Therefore, considering the risks regarding the Russian supply, the weather conditions and the 
global gas market developments in 2023, it is necessary to prolong a demand reduction of the 
same  amplitude  after  the  expiration  of  the  period  of  the  Regulation  (EU)  2022/1369,  and 
before the beginning of the filling season, as well as the necessity to continue this reduction 
over a 12-month period until 31 March 2024.  

Apart  from  ensuring  security  of  supply,  demand  reduction  would  ease  the  economic 
difficulties by reducing the price volatility and ease pressure on a tight gas market. While the 
worst  economic  impacts  have  so  far  been  averted  in  2022,  global  gas  markets  remain  very 
constrained in 2023. Gas prices have reached historical highs in 2022 with a maximum price 
over 320 €/MWh on 26 August and they are now below 45 €/MWh. However, gas prices are 
still at a level twice as high as the historical norm. 

2 

Report from the Commission to the Council on the review of Regulation (EU) 2022/1369 (COM(2023) 
173) and accompanying Commission Staff Working Document (SWD (2023) 63) 

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The  same  spirit  of  solidarity  which  has  prevailed  in  the  adoption  and  application  of 
Regulation (EU) 2022/1369 should continue. The legal framework for security of gas supply 
set  by  Regulation  (EU)  2017/1938  remains  insufficient  to  address  long-lasting  disruptions, 
which could lead to uncoordinated actions by Member States, threatening to endanger security 
of supply in  neighbouring Member States  and to place  an additional burden on the Union’s 
industry, consumers, and functioning of the internal market. While some Member States are 
more  exposed  to  the  disruptions  than  others,  any  gas  supply  difficulties  or  shortages  would 
cause harm to the economies of all Member States. As set out in the Communication “Save 
Gas for a Safe Winter” of 20 July 2022, it is cheaper for citizens and industry of all Member 
States,  in  a  spirit  of  solidarity,  to  continue  reducing  demand  in  a  proportionate  and 
demonstrably  manageable  manner  rather  than  face  uncoordinated  curtailments  later.  The 
reduction  would  continue  the  current  one,  and  not  be  cumulative.  It  would  represent  a 
continued reduction of 15% for the period from 1 April 2023 to 31 March 2024 compared to a 
reference  period  from  1  April  2017  to  31  March  2022,  and  therefore  be  identical  and 
proportionate  to  the  reduction  foreseen  by  the  current  Regulation.  This  reduction  would 
amount  to  60  bcm  that  will  not  be  consumed  in  the  period  from  1  April  2023  to  31  March 
2024. 

In the informal Energy Council on 27 February 2023, the EU energy ministers discussed the 
preparation  for  the  next  winter  and  beyond.  This  discussion  highlighted  the  broad 
understanding of major persisting  risks on gas supply related to Russia and the global LNG 
market,  with  possibly a  lower quantity of available  gas due  to  the  post-COVID recovery of 
the Asian economy. Moreover, threats on critical gas infrastructure for the EU supply cannot 
be ignored.  

Therefore,  the  proposed  Regulation  extends  Regulation  (EU)  2022/1369  to  31  March  2024 
and provides for an extended reduction period from 1 April 2023 to 31 March 2024, to ensure 
that demand reduction continues during the storage filling season in the summer of 2023 and 
during  the  winter  2023-2024.  The  demand  reduction  period  and  the  reference  period  are 
adjusted accordingly, as well as the dates in Article 5(5) regarding the excess storage filling 
and the review date of Article 9, to ensure consistency with the prolonged time period.  

The  monitoring  and  reporting  obligation  of  the  gas  consumption  to  assess  the  demand 
reduction achieved of Article 8(1) has been increased from once every two months to every 
month,  given  the  need  to  have  up  to  date  figures  in  order  to  take  an  effective  decision  of 
proposing to declare a Union alert. In addition, given that there is insufficiently granular data 
available at EU level to determine how the demand reduction was achieved, it is proposed to 
include  in  the  reporting  a  breakdown  of  the  gas  consumption  per  sector.  This  should  help 
understand the nature of the achieved demand reduction, i.e. whether demand reductions are 
savings,  substitution  or  demand  destruction  and  would  allow  to  make  more  targeted 
recommendations in  light  of  maintaining  the  EU’s  industry’s  competitiveness  on  a  global 
stage.  

 • 

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. 

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It  flows  logically  from  existing  initiatives,  such  as  the  “REPowerEU”,  the  proposal  for  a 
“Hydrogen and Gas Market Decarbonisation Package” 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.  It  also  supplements 
Council Regulation  (EU) 2022/2576  enhancing solidarity through better  coordination of gas 
purchases,  exchanges  of  gas  across  borders  and  reliable  price  benchmarks.  Solidarity 
mechanisms are 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.  

Following the unjustified and unprovoked 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 rollout 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. 

Regulation  (EU)  2022/1032 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  to  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 and the following winter periods. 

The “Save Gas for a Safe Winter” Communication adopted on 20 July 2022 sets out the tools 
that the EU already has available for a coordinated demand reduction, and what else needs to 
be  done,  so  that  the  EU  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 prolongs the rules of the Regulation 
(EU) 2022/1369 for coordinated demand reductions and prolongs the provisions for declaring 
a Union alert. Indeed, while there is already the possibility for the Commission to declare an 
emergency  at  Union  level,  the  possibility  to  declare  an  alert  at  Union  level  should  also  be 
prolonged.  The  current  situation  shows  that  such  an  alert  may  be  useful  to  ensure  that  all 
Member States take the necessary preventive measures to avoid an energy emergency. 

This  proposal  for  extending  the  current  Regulation  (EU)  2022/1369,  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 existing provisions and the recent initiatives in the energy sector, 
safeguarding the security of gas supply and ensuring coordination between demand reduction 
measures across the EU. 

• 

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, as the proposal extends the current Regulation (EU) 2022/1369 
to 31 March 2024. The proposal is also fully compatible with competition and market rules, as 

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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 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 and on-going shortage of gas supplies constitutes a severe difficulty in the supply 
of an energy product pursuant to Article 122 TFEU. The EU has not yet completely replaced 
Russian  gas  supply  and  currently  relies  on  Russian  gas  for  less  than  10%  of  the  pipeline 
imports.  A  complete  halt  of  those  imports  would  lead  to  insufficient  storage  levels  in 
November and to a complete depletion of the EU storages during the winter season therefore 
exposing the EU to severe risks for security of supply. Furthermore, the current exceptionally 
high prices, twice as high as historical, underline the need for urgent action to further reduce 
gas prices in Europe and preserve the global competitiveness of the EU economy. Therefore, 
EU leaders  and  the Commission  have identified the urgent  need  for  continued measures  for 
more coordinated and immediate action, in order to be better prepared for possible further gas 
disruptions in the course of the year. The measures to be continued under the instrument for a 
limited  period  of  time  allow  all  Member  States  to  prepare  for  possible  further  supply 
shortages  in  a  coordinated  manner,  in  a  spirit  of  solidarity.  A  time-limited  extension  of,  as 
well  as  targeted  amendments  to,  the  measures  taken  under  Regulation  (EU)  2022/1369  will 
also allow the EU and Member States to  assess the effect of these measures and to  propose 
and adopt permanent amendments to the ordinary legal framework for security of gas supply 
as  set  out  in  Regulation  (EU)  2017/1938.  It  is  therefore  justified  to  base  the  proposed 
instrument on Article 122(1) TFEU. 

• 

Subsidiarity (for non-exclusive competence)  

The  measures  planned  to  be  continued  under  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  continued  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 continues to 
be  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  continued  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. 

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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 continued coordinated action. Hence, the proposal 
does  not  go  beyond  what  is  necessary  to  achieve  the  objectives  laid  down  in  the  current 
instrument. The measures proposed to be continued 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 a 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.  However,  the  matter  has  been  discussed  with  the  Gas  Coordination  Group,  which 
includes representatives of Member States and European associations representing suppliers, 
infrastructure  operators,  traders  and  the  main  consumers  of  gas.  The  members  of  the  Gas 
Coordination Group during its meeting of 16 February have voiced their understanding of the 
importance  of  a  continued  demand  reduction  as  a  particularly  cost-effective  measure  to 
preserve and strengthen security of supply.  In addition, the point has been raised during the 
informal Energy Council meeting on 27 February 2023, where Member States confirmed the 
importance  of  adequate  preparedness  in  view  of  the  next  winter  2023/24  and  the  important 
role of gas demand reduction in this context.  

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• 

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. 

SUMMARY OF CHANGES INTRODUCED  

Building on the findings of the Article 9 report, the changes proposed are targeted and limited 
in scope to prolong demand reduction after the expiration of the period of the Regulation (EU) 
2022/1369 until the end of the next winter:  

In Article 2, the reference period against which the reduction is measured is proposed to be 
changed  from  1  August  2017  to  31  March  2022  in  Regulation  (EU)  2022/1369,  to  1  April 
2017 to 31 March 2022. 

In Article 3, the period of 1 August to 2022 to 31 March 2023 for Member States to reduce 
their gas consumption on a voluntary basis is replaced by the period 1 April 2023 to 31 March 
2024.  

In Article 5, the period of 1 August to 2022 to 31 March 2023 for Member States to reduce 
their  gas  consumption  on  a  mandatory  basis  in  a  Union  alert  declared  by  the  Council  upon 
proposal of the Commission is replaced by the period 1 April 2023 to 31 March 2024. 

In  Article  8,  the  bimonthly  reporting  of  the  demand  reduction  achieved  is  replaced  by  a 
monthly reporting of demand reduction of the electricity and heat generation, the industry and 
the households and services, according to existing Eurostat definitions and conventions. 

In Articles 9 and 10 the date of the review by the Commission and the period of application of 
the  Regulation  are  adapted  respectively  to  extend  until  31  March  2024.  The  existing 
provisions of Article 5 acknowledging specific national  circumstances in  case of mandatory 
demand reduction in a Union alert continue to  apply. This holds in particular as regards the 
exemptions for Member States not directly interconnected to a gas interconnected system, the 
possibility  to  take  into  account  gas  consumed  as  feedstock  in  the  reference  period,  the 
possibility  to  reduce  the  reduction  in  case  of  low  export  capacity  already  at  maximum  use, 
and  finally  in  case  of  risk  of  an  electricity  crisis,  including  when  the  electricity  system  is 
desynchronised from a third country. 

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2023/0087 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) 2022/1369 as regards prolonging the demand reduction 
period for reduction measures for gas and reinforcing the reporting and monitoring of 
their implementation 

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) 

Council  Regulation  (EU)  2022/1369(3)  aims  at  voluntarily  and,  if  necessary, 
mandatorily reducing the Union’s gas demand, facilitating the filling of storages and 
ensuring  better  preparation  against  any  further  supply  disruptions.  Regulation  (EU) 
2022/1369 was adopted on the basis of Article 122 of the Treaty on the Functioning of 
the  European  Union  (‘TFEU’)  in  view  of  the  imminent  gas  supply  crisis  caused  by 
Russia’s  unprovoked  and  unjustified  invasion  of  Ukraine  in  February  2022  and  the 
need for the Union to react with temporary measures in a spirit of solidarity between 
Member States. 

Pursuant to Article 3 of Regulation (EU) 2022/1369, Member States were to use their 
best efforts to reduce their gas consumption by 15% from August 2022 to March 2023. 
In  case  the  voluntary  demand  reduction  measures  should  prove  to  be  insufficient  to 
address  the  risk  of  a  serious  supply  shortage,  the  Council,  on  a  proposal  from  the 
Commission,  was  empowered  to  declare  a  Union  alert  pursuant  to  Article  4  of 
Regulation  (EU)  2022/1369,  which  would  trigger  a  mandatory  demand  reduction 
obligation. In recent months, Member States have worked diligently and have adopted 
measures  aiming  to  reduce  their  respective  gas  demand  by  15%,  in  a  spirit  of 
solidarity.  That  has  already  resulted  in  effective  gas  demand  reductions  across  the 
Union of more than 15%, from August 2022 to January 2023.  

However,  severe  difficulties  persist  for  the  security  of  energy  supply.  The  global 
situation  on  the  gas  market  has  not  improved  since  February  2022  and  the  Union 
continues to rely on certain volumes of Russian gas to meet its overall gas demand, in 
spite  of  the  demand  reduction  achieved  under  Regulation  (EU)  2022/1369.  Energy 
demand  curtailment  to  citizens  of  the  Union  has  been  avoided  over  the  past  year 
thanks  to  effective  measures  regarding  storage  refilling  and  demand  reduction. 
However, 11 Member States are still declaring an early warning and one an alert level 
in  accordance  with  Regulation  (EU)  2017/1938.  Therefore,  since  the  gas  prices  are 
still  exceptionally  high  and  the  global  supply  has  not  improved  since  August  2022 

3 

COUNCIL  REGULATION  (EU)  2022/1369  of  5  August  2022  on  coordinated  demand-reduction 
measures for gas (OJ L 206, 8.8.2022, p. 1). 

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(4) 

(5) 

(6) 

(7) 

(8) 

when the Regulation (EU) 2022/1369 was adopted, there is an urgency to prolong the 
measures that helped containing the crisis, especially continuing demand reduction. A 
halt of the demand reduction measures  would introduce changes to  the fragile stable 
situation  the  EU  has  achieved  so  far  and  would  deteriorate  the  resilience  to  likely 
future developments such as a complete halt of Russian imports. It is therefore urgent 
to prevent the exposure of the Union to gas shortage and high price volatility.  

Due to the significant decrease in Russian pipeline gas imports over the past year, the 
capacity of the Union to refill storage is currently considerably reduced, also compared 
to  the  situation  in  the  summer  of  2022.  While  the  energy  crisis  started  already  last 
year,  during  2022  the  Union  was  able  to  import  approximately  60  bcm  of  gas  from 
Russia to fill storages, including transit via the NordStream 1 pipeline; however, over 
the summer of 2022 Russia interrupted and eventually completely halted gas supplies 
through that pipeline, which in September 2022 was damaged by acts of sabotage to 
such a degree that it currently cannot transport any gas and will not be able to do so in 
the foreseeable future. With the current pipeline gas import levels, the Union will only 
receive a maximum of 20 bcm of Russian pipeline imports, if these unreliable imports 
are not disrupted altogether. Therefore, there is a serious risk that gas shortages occur 
in the Union during the forthcoming winter 2023 to 2024.  

These  severe  difficulties  are  exacerbated  by  a  number  of  additional  risks  and  new 
elements,  including  (i)  a rebound in  Asian  LNG  demand reducing the  availability  of 
gas  on  the  global  gas  market,  (ii)  weather  conditions  which  have  recently  further 
deteriorated, thus affecting the hydropower storage and nuclear production due to low 
water levels, (iii) new technical developments which increase the uncertainties risks as 
to  the availability of  existing  nuclear production,  and require higher recourse to  gas-
fired  power  generation,  and  (iv)  further  possible  gas  supply  disruptions,  including  a 
complete halt of gas imports from Russia.  

These persisting and new severe difficulties affect meeting the Union’s gas demand, in 
particular the filling of underground storage facilities in a timely and efficient manner 
for the winter 2023-2024, as well as the adequacy between supply and demand during 
this next winter.  

In accordance with Article 9 of Regulation (EU) 2022/1369, the Commission carried 
out a review of that Regulation, the results of which are summarised in the report from 
the  Commission  to  the  Council.  The  report  analyses  different  scenarios,  with  and 
without an extension of demand-reduction efforts under the Regulation, including a 7-
month extension from April to October 2023, an 8-month extension from August 2023 
to  March  2024,  and  a  1-year  extension  from  April  2023  to  March  2024.  The  report 
concludes that without continued demand reduction, storage levels  would only reach 
69 bcm by the end of October 2023, significantly below the 90% (89.4 bcm) target for 
1  November  of  Regulation  (EU)  2017/1938  as  amended  by  Regulation  (EU) 
2022/1032 and that storage levels would be fully depleted by February 2024.  

Regarding the different scenarios assessed in the report, in case of a 7-month extension 
from  April  to  October  2023,  storages  would  be  sufficiently  filled  by  the  end  of  the 
summer  2023  (95  bcm  by  the  end  of  October  2023,  reaching  the  90%  target). 
However,  because  the  gas  demand,  even  in  a  normal  winter,  is  twice  as  high  as  in 
summer, storages would be almost fully depleted by the end of next winter (9 bcm by 
the  end  of  March  2024).  This  implies  extremely  serious  security  of  supply  concerns 
and makes it very difficult to fill storages sufficiently for the following winter.  In case 
of an 8-month extension from  August  2023 to  March 2024, storages would  be filled 

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too slowly, reaching only 80 bcm by the end of October 2023, significantly below the 
target, and storage levels would drop to below 30% by the end of  the coming winter 
(below 28 bcm), causing serious security of supply concerns and making it difficult to 
fill  storages sufficiently  for the following winter. Only  in  case of a 1-year extension 
with  a  continued  15%  demand  reduction  from  April  2023  to  March  2024,  storage 
levels  could  meet  the  1  November  90%  storage  target  and  reach  89.4  bcm  by  1 
November 2023 and Member States could be on track for their respective 1 May target 
with 43 bcm stored at EU level by the end of March 2024.  

(9) 

In view of this, the report concludes that a continued demand reduction of 15% over a 
12-month  period  until  the  end  of  March  2024  is  necessary  in  order  to  ensure  that 
Member States can comply with the storage target of 90% set out in Regulation (EU) 
2017/1938  as  amended  by  Regulation  (EU)  2022/1032,  which  is  imperative  for 
security of gas supply, and to prevent any supply gap next winter.  

(10)  While  Member  States  can  decide  which  measures  are  more  appropriate  to  ensure 
meeting  the  storage  targets,  this  cannot  be  achieved  without  demand  reduction 
measures. Indeed, the report concludes that there would be insufficient gas volumes in 
the  market  to  meet  the  obligation  in  all  Member  States.  This  means  that  not  all 
Member  States  are  physically  able  to  fill  storages  to  adequate  levels,  resulting  in 
severe difficulties for security of supply at the end of winter 2023-2024. 

(11)  The report also indicates that a reduction in gas consumption proportionate to the one 
provided for in Regulation (EU) 2022/1369 is needed during the period from 1 April 
2023  to  31  March  2024.  The  prolonged  reduction  needed  would  correspond  to  a 
reduction  of  15%  for  the  period  from  1  April  2023  to  March  2024  compared  to  a 
reference  period  from  1  April  2017  to  31  March  2022.  The  prolongation  of  the 
demand  reduction  measures  and  the  extension  of  the  reduction  period  would  also 
provide  flexibility  to  the  market  to  contain  the  gas  price  volatility  and  prevent  price 
spikes like those observed in 2022.   

(12)  Given  the  current  tight  supply  and  demand  balance,  even  a  moderate  disruption  can 
have  a dramatic impact  on the  gas market.  The  gas storage filling obligation applies 
unless a Union or regional emergency is declared in accordance with Regulation (EU) 
2017/1938. Therefore, a  sudden disruption of 10% of the  gas pipeline imports to the 
Union  would  either  impose  drastic  isolated  measures  by  Member  States  to  comply 
with their filling storage obligation or lead to declare a Union or regional emergency, 
unless  the  voluntary  coordinated  reduction  of  demand  continues.  Such  prolonged 
coordinated demand reduction by all Member States in a spirit of solidarity is essential 
to  the  refilling  of  storage  capacities,  in  an  efficient  way  with  minimum  market 
disturbances, which remains imperative for security of gas supply ahead of the winter 
2023-2024.  

(13)  The  extension  constitutes  an  emergency  measure  in  response  to  persisting  and  new 
severe  difficulties in  the supply of  energy  which entail  a  risk of imminent  crisis  and 
require  to  adapt  the  gas  demand  reduction  period  both  in  order  to  prolong  the 
voluntary  gas  demand  reduction,  and  in  order  to  ensure  the  possibility  to  declare  a 
Union  alert  and  trigger  the  corresponding  mandatory  gas  demand  reduction  after 
March 2023. 

(14)  This  current  crisis  is  exposing  the  entire  Union  to  risks  of  energy  shortage  and  high 
energy prices. Since the Union is a single market, a gas shortage in one Member State 
would  have  severe  consequences  in  all  the  other  Member  States  through  physical 
supply shortage of gas, volatility of prices or disruption of industrial chains resulting 

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from  possible  curtailments  of  specific  industries  in  a  Member  State.  Moreover,  in  a 
spirit of solidarity, all Member States can contribute to continue reducing the risks of 
energy shortage and contain the gas price volatility by all reducing their demand. The 
potential  positive  impact  of  this  spirit  of  solidarity  has  even  considerably  increased 
over the past year with the development of new interconnection capacities towards the 
East and additional LNG import capacities which better connect Member States with 
LNG regasification facilities, physically or virtually.  

(15)  The need to act is urgent as the season to fill storage starts in April 2023. Given the 
persisting and new severe difficulties described above, not prolonging the coordinated 
reduction  of  demand  on  time  before  the  filling  of  storage  would  have  immediate 
effects  on  the  trajectories  to  fill  storage  and/or  the  market  conditions  impacting 
security of supply and the volatility of prices.  

(16)  Article  122(1)  TFEU  enables  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.  In  view  of  the  above 
considerations,  the  current  crisis  in  the  supply  of  gas,  an  energy  product,  constitutes 
such a situation. Therefore, a temporary extension of, as well as targeted amendments 
to  the measures  taken under Regulation  (EU) 2022/1369  are necessary to respond to 
the on-going situation in a spirit of solidarity between Member States. It  is therefore 
justified to base the proposed instrument on Article 122(1) TFEU. 

(17)  Pursuant to Article 8 of Regulation (EU) 2022/1369, Member States are to report on 
the demand reduction achieved to the Commission every two months, no later than by 
the 15th day of the following month, via Eurostat. However, experience has shown that 
a two-month reporting period is  insufficient to  provide up to  date figures in  order to 
take an effective decision on proposing to  declare a Union alert. Therefore, Member 
States  should  report  their  gas  consumption  to  assess  the  demand  reduction  achieved 
every month. In order to better target the measures to reduce demand, the monitoring 
of gas consumption at Member States and Union level and the implementation of this 
Regulation should rely on a reporting which includes a breakdown of gas consumption 
for  electricity  and  heat  generation,  households  and  services  according  to  the 
definitions  and  conventions  established  in  Regulation  (EC)  1099/2008  on  energy 
statistics. 

(18) 

In  accordance  with  Article  9  of  Regulation  (EU)  2022/1369,  the  Commission  is  to 
carry out a review on the basis of the findings of which, the Commission is entitled to 
propose  to  prolong  the  period  of  application  of  this  Regulation.  To  account  for  the 
now  proposed  prolongation  of  the  application  of  Regulation  (EU)  2022/1369,  a  new 
review date should be set for 1 March 2024. 

(19)  The  extended  and  modified  demand  reduction  measures  should  be  temporary  and 
remain  into  force  until  the  end  of  the  next  winter  season.  On  the  basis  of  the  new 
review to be carried out by 1 March 2024, the Commission should, if appropriate, be 
able to propose to prolong their period of application. 

(20)  Regulation  (EU)  2022/1369  should  therefore  apply  until  31  March  2024.  The 
amendments brought about to Regulation EU) 2022/1369 should take effect by 1 April 
2023 as this is necessary in order to ensure a continued demand reduction of 15% over 
a  12-month  period  from  April  2023  until  the  end  of  March  2024  and  to  enable 
economic  operators,  Member  States  and  the  Commission  to  take  the  necessary 
measures to achieve that objective.   

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(21)  Regulation (EU) 2022/1369 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Amendments to Regulation (EU) 2022/1369 

Regulation (EU) 2022/1369 is amended as follows: 

(1) 

in Article 2, points (5) and (6) are replaced by the following: 

(a) 

‘(5)  ‘reference  gas  consumption’  means  the  volume  of  a  Member  State’s 
average gas consumption during the reference period; for Member States where 
gas consumption increased at least by 8 % in the period from 1 April 2021 to 
31 March 2022 compared to the average gas consumption during the reference 
period,  ‘reference  gas  consumption’  means  only 
the  volume  of  gas 
consumption in the period from 1 April 2021 to 31 March 2022; 

(b) 

“(6) ‘reference period’ means the period from 1 April 2017 to 31 March 2022.  

(2) 

Article 3 is replaced by the following:  

Article 3 

Voluntary demand reduction 

Member States shall use their best efforts to reduce their gas consumption in the period from 
1 April 2023 to 31 March 2024 at least by 15% compared to their average gas consumption in 
the period from 1 April 2017 to 31 March 2022 (‘voluntary demand reduction’). Articles 6, 7 
and 8 shall apply to those voluntary demand reduction measures. 

(3) 

in  Article  5,  paragraph  2  is  replaced  by  the  following:  ‘2.  For  the  purpose  of 
mandatory  demand  reduction,  for  as  long  as  the  Union  alert  is  declared,  gas 
consumption in each Member State over the period from 1 April 2023 to 31 March 
2024  (‘reduction  period’)  shall  be  15  %  lower  compared  to  its  reference  gas 
consumption. Any demand reductions achieved by Member States during the period 
before the Union alert was declared shall be taken into account for the purpose of the 
mandatory demand reduction. 

(4) 

in Article 8, paragraph 1 is replaced by the following: 

“1. The competent authority of each Member State shall monitor the implementation 
of the demand reduction measures on its territory. Member States shall report on gas 
consumption (in terajoules, TJ) to the Commission every month and not later than by 
the 15th day of the following month. Member States shall include in their reporting a 
breakdown  of  gas  demand  reduction  per  sector,  including  gas  demand  for  the 
following sectors:  

(a) 

input for electricity and heat generation;  

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(b) 

(c) 

final energy consumption in industry;  

final energy consumption in households and services.  

For  the  purpose  of  this  paragraph,  the  definitions  and  conventions  established  in 
Regulation (EC) 1099/2008 on energy statistics shall apply. 

The  GCG  shall  assist  the  Commission  in  the  monitoring  of  the  voluntary  and 
mandatory demand reduction.” 

(5) 

in Article 9 ‘1 May 2023’ is replaced by ‘1 March 2024’; 

(6) 

in Article 10, the second paragraph is replaced by the following: 

‘It shall apply until 31 March 2024’. 

Article 2 

Entry into force and application 

This Regulation shall enter into force on 1 April 2023. 

It shall apply until 31 March 2024. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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