Proposal for a COUNCIL REGULATION amending Regulation (EU) 2022/2576 as regards the prolongation of its period of application
Date: 2023-11-28
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, cross-border cooperation, energy cooperation, energy crisis, energy market, gas supply, natural gas, purchase, security of supply

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   EUROPEAN COMMISSION  Brussels, 28.11.2023  COM(2023) 762 final 2023/0444 (NLE)  Proposal for a COUNCIL REGULATION amending Regulation (EU) 2022/2576 as regards the prolongation of its period of application  
 
EXPLANATORY MEMORANDUM 

1. 

1.1 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Since Russia’s unprovoked and unjustified  full-scale invasion of Ukraine, 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 had been less than 10% 
of the EU’s gas imports in the first half of 2023. Twelve Member States 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  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.  The  wholesale  price  in  2022  was  on  average  more  than  five  times  higher  than  the 
pre-crisis level and even spiked above 300 €/MWh at the peak of the crisis in summer 2022. 
They remain to  this date at  markedly  higher  levels  than in the pre-crisis period, with  strong 
loss  of 
volatility.  Companies, 
competitiveness, while citizens face reduced purchasing power. 

in  particular  energy-intensive 

industries,  experienced 

In  this  context,  the  Council  adopted  on  19  December  2022  the  Council  Regulation  (EU) 
2022/2576  to  enhance solidarity through better  coordination of gas purchases, reliable price 
benchmarks and exchanges of gas across borders. 

Regulation (EU) 2022/2576 provides a temporary legal basis in respect of: 

•  better coordination of gas purchases (Chapter II); 
•  measures  to  prevent  excessive  gas  prices  and  excessive  intra-day  volatility  in  energy 

derivatives markets (Chapter III), and; 

•  measures for the case of a gas emergency (Chapter IV). 

Regulation (EU) 2022/2576 aims at mitigating the impact on the price for gas by addressing 
demand  and  supply,  ensuring  security  of  supply  across  the  entire  European  Union,  and 
enhancing  solidarity.  It  contains different  elements  designed to  work, in  a coherent  manner, 
towards avoiding very high prices and reinforcing solidarity and security of supply. 

This  proposal  seeks  to  prolong  by  one  year  the  period  of  application  of  the  provisions  of 
Regulation (EU) 2022/2576 in view of the persisting risks for energy supplies in the Union. 

The  Union’s  response  under  REPowerEU  and  following  initiatives,  including  the  measures 
set  out  in  Regulation  (EU)  2022/2576,  contributed  to  mitigating  the  effects  of  Russia’s 
invasion  of  Ukraine  on  the  supplies  of  gas,  and  its  subsequent  impacts  on  price  levels, 
inflation, financial and macroeconomic stability, and on all citizens. 

However, global gas markets  continue to  be very tight  and market  balances are expected to 
remain precarious in  the immediate future. This  situation has negative  consequences on gas 
prices  which,  despite  being  lower  than  the  peak  experienced  in  summer  2022,  remain  more 
than twice as high than pre-crisis levels. A number of risks can, if they materialise, fuel the 
fear of scarcity which, given the fragility of the market due to its tightness, may trigger large 
reactions with serious repercussions on prices. These risks  include a rebound in Asian LNG 

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demand reducing the availability of gas on the global gas market; a cold winter which could 
lead to an increase of gas demand of up to 30 bcm; extreme weather potentially affecting the 
hydropower  storage  and  nuclear  production  due  to  low  water  levels,  and  the  subsequent 
increase  in  demand  for  gas  fired  power  generation;  further  disruptions  of  critical 
infrastructures;  and  a  deterioration  of  the  geopolitical  environment  and  threat  landscape  in 
supplying regions, for example with the crisis in the Middle East. 

Should the relevant Union measures cease to apply, this would alter the stabilised but fragile 
situation  the  Union  has  achieved  so  far  and  would  deteriorate  the  resilience  to  likely  future 
developments such as a complete halt of Russian imports. 

1.1.1.  The main elements of Regulation (EU) 2022/2576 

(1) 

Demand aggregation and better coordination of gas purchases 

Pursuant to Regulation (EU) 2022/2576, the Commission designed and implemented, with the 
support of a service provider, the “AggregateEU” mechanism, which allows for aggregation 
of demand, organisation of tendering rounds vis à vis international gas suppliers and matching 
the  demand  with  suppliers’  bids.  The  mechanism  is  open  to  participation,  as  buyers,  of 
undertakings established in the EU and in the Energy Community Contracting Parties. 

The  Regulation  provides  for  mandatory  demand  aggregation  by  laying  down  on  Member 
States an obligation to require domestic undertakings to use the service provider to aggregate 
demand with sufficiently high volumes of gas. Volumes equivalent to at least 15 % of storage 
filling targets (around 13,5 billion cubic metres for the Union as a whole), are to be included 
by Member States’ undertakings in the demand aggregation process. 

To  prevent  that  the  objective  of  diversification  from  the  gas  supplied  from  the  Russian 
Federation  is  put  at  risk,  Regulation  (EU)  2022/2576  provides  that  participation  of 
undertakings  or  other  bodies  controlled  by  Russian  natural  or  legal  persons  or  undertakings 
established in  the Russian Federation is  excluded. In addition,  natural  gas originating in  the 
Russian  Federation  is  excluded  from  the  demand  aggregation  and  joint  purchasing 
mechanism, including natural gas supplies entering the Member States or Energy Community 
Contracting Parties through a list of entry points. 

Regulation (EU) 2022/2576 contains provisions aimed at ensuring a better coordination of gas 
purchases  in  the  Union  and  energy  solidarity  among  Member  States.  To  achieve  this,  the 
Regulation  seeks  to  provide  the  Commission  with  an  overview  of  upcoming  tenders  or 
contracts  related  to  the  sale  and  purchase  of  gas.  Accordingly,  natural  gas  undertakings  or 
undertakings  consuming  gas  are  required  to  send  notifications  to  the  Commission  of  any 
upcoming  tenders  or  contracts  of  a  volume  above  5  TWh/year.  The  Commission  then  may 
issue  recommendations  to  such  undertakings  in  cases  where  such  tenders  or  contracts  may 
negatively impact the joint purchasing mechanism, market functioning, security of supply or 
solidarity. 

(2) 

Efficient operation of pipelines and LNG terminals 

Regulation  (EU)  2022/2576  also  enhances  the  efficient  operation  of  pipelines  and  LNG 
terminals. 

Diversification  of  supply  sources  away  from  Russian  gas  has  been  changing  the  gas  flow 
patterns  in  the  EU.  Therefore,  the  routes  from  LNG  terminals  to  consumption  centres  have 
become  more  relevant  than  the  formerly  predominant  East-West  flows.  However,  such 

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changes  in  gas  flows  have  led  to  particularly  high  levels  of  congestion  at  interconnection 
points, notably in north-western Europe. 

To  enhance  the  gas  system’s  responsiveness  to  congestion  and  improve  the  system’s 
flexibility,  Article  14  of  Regulation  (EU)  2022/2576  contains  provisions  obliging  TSOs  to 
offer underutilised contracted firm capacity for all interconnectors, not only congested ones, 
either through (i) the implementation of a new monthly “use-it-or-lose-it” (UIOLI) procedure, 
or (ii) the extension of existing procedures with the same objective. 

Moreover,  it  has  become  of  utmost  importance  to  optimise  the  LNG  absorption  capacity  of 
the  EU  LNG  terminals  and  the  usage  of  storage  facilities.  For  this  purpose,  increased 
transparency  was  deemed  necessary  by  market  participants,  similar  to  the  level  of 
transparency  existing for the transport of gas via pipelines. Gas Infrastructure Europe (GIE) 
operates two main platforms covering all EU Member States as well as the United Kingdom 
and  Ukraine:  the  Aggregated  Gas  Storage  Inventory  (AGSI)  for  gas  storage  and  the 
Aggregated  LNG  Storage  Inventory  (ALSI)  for  LNG.  Following  the  entry  into  force  of 
Regulation  (EU)  2022/2576  (Articles  12  and  13),  new  components  were  added  to  these 
platforms,  including  information  on  services  offered  and  the  conditions  that  apply  to  those 
services,  contracted  and  available  storage  and  LNG  facility  capacities,  tariffs,  etc.  The 
platforms  currently  cover  almost  all  EU  large-scale  LNG  terminals  and  98%  of  EU  storage 
facilities.  In  addition  to  the  EU-wide  platforms,  the  individual  storage  and  LNG  operators 
were obliged to create more transparency around the possibilities to book secondary capacity. 
To this end, they were required to set up individual booking platforms. 

Greater transparency makes for a better and more comprehensive overview of the LNG and 
storage  markets  in  the  EU.  It  also  results  in  more  efficient  use  of  these  infrastructures  and 
increases the potential to attract additional suppliers. 

(3) 

Action on the level of gas prices 

Development of a new complementary benchmark for LNG 

The  EU’s  LNG  market  is  still  consolidating.  Hub  indexed  pricing  remains  influenced  by 
pipeline supplies and by existing infrastructure bottlenecks, and therefore it does not always 
accurately  reflect  the  price  at  which  LNG  is  actually  imported  into  the  Union.  Also,  as 
Russian  gas  still  represents  a  non-negligible  –  though  decreasing  –  part  of  EU  imports, 
increasingly  concentrated  in  some  areas,  gas  markets  remain  vulnerable  to  Russian  gas 
supplies manipulation. 

There  is  a  need  to  provide  for  stable  and  predictable  pricing  for  LNG  imports,  which  are 
indispensable to replace the supply shortfalls caused by the likely halt of Russian gas imports. 
Regulation  2022/2576  has  tasked  the  European  Agency  for  the  Cooperation  of  Energy 
Regulators (‘ACER’) to create within a short time frame an objective price assessment tool, 
and over time a benchmark, of the EU’s LNG imports by collecting real-time information on 
all  daily  transactions.  ACER  has  developed  such  a  benchmark,  which  provides  more 
comprehensive information to buyers and increases price transparency. 

Regulation  2022/2576  granted  ACER  the  necessary  powers  to  collect  the  transaction  data 
needed  for  the  establishment  of  the  LNG  benchmark,  building  on  and  reinforcing  the  tasks 
and  powers  ACER  already  had  under  Regulation  (EU)  No  1227/2011  of  the  European 
Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and 
transparency and Commission Implementing Regulation (EU) No 1348/2014 of 17 December 
2014  on  data  reporting  implementing  Article  8(2)  and  Article  8(6)  of  Regulation  (EU)  No 

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1227/2011  of  the  European  Parliament  and  of  the  Council  on  wholesale  energy  market 
integrity and transparency (hereinafter together referred to as ‘REMIT’). 

(4) 

Action to reduce price volatility 

Intra-day price volatility management mechanism: 

Financial legislation (MiFID II) already requires a set of mechanisms to be set up by trading 
venues to contain significant volatility in financial markets, and ESMA has been working on 
ways to improve the functioning of circuit breakers across all asset classes, which will have a 
more permanent positive impact on trading of all asset classes, including energy derivatives. 
The  just  concluded  MiFIR  Review  has  also  added  the  notion  of  emergency  situation  and 
given additional powers to ESMA on circuit breakers. Those changes are due to be transposed 
in  national  legislations  by  the  second  half  of  2025.  The  intra-day  volatility  management 
mechanism set out in Regulation (EU) 2022/2576 has been introduced so that trading venues 
set  up  mechanisms  to  prevent  excessive  movements  of  prices  within  a  trading  day,  either 
through  the  adaptation  of  existing  circuit  breakers  or  through  the  creation  of  an  additional 
mechanism. Large volatility spikes on gas and electricity markets make it difficult for energy 
firms to continue participating in those markets and meet their hedging needs while ensuring 
security of energy supply for the end-consumers. 

Therefore,  Regulation  (EU)  2022/2576  lays  down  a  requirement  for  trading  venues  to 
establish  a  temporary  intra-day  volatility  management  mechanism  aimed  at  limiting  large 
price movements in energy-related derivatives contracts within the same trading day. Trading 
venues can implement the intra-day volatility management mechanism either by integrating it 
into  their  existing  circuit  breakers  already  established  in  accordance  with  Directive 
2014/65/EU or as an additional mechanism. 

(5) 

Security of supply 

Extension of solidarity protection obligation to critical gas fired power plants 

Under Regulation (EU) 2017/1938, a Member State where critical gas-fired power plants may 
play a key role for security of electricity supply, would have to curtail these power plants, to 
the possible detriment of the security of electricity supply of other Member States, before this 
Member State is allowed to request solidarity measures under Regulation (EU) 2017/1938. To 
prevent  such  negative  spill-over  effects  into  electricity  generation,  Regulation  (EU) 
2022/2576 allows  Member States  to  trigger a solidarity request,  under  certain  limits, if gas-
fired power plants, that are needed to ensure the electricity system’s adequacy, are at risk of 
not being supplied with critical gas volumes. For the same reason, Member States providing 
solidarity will be entitled to ensure that the operation of their critical gas-fired power plants is 
not endangered when providing solidarity to another Member State. 

Default rules for bilateral solidarity 

Specific measures in Regulation (EU) 2022/2576 introduced a default mechanism between the 
Member States to ensure they help each other to supply the “solidarity protected customers” 
(households  and  under  certain  conditions  district  heating  and  essential  social  services)  and 
critical gas-fired power plants, in an emergency leading to very severe shortage of gas. The 
security of supply rules resulting from Regulation (EU) 2017/1938 introduced the principle of 
such  solidarity  but  its  actual  use  in  a  crisis  requires  detailed  legal,  technical  and  financial 
arrangements  which  were  supposed  to  be  agreed  bilaterally  between  Member  States. 
However, only eight out of 40 required arrangements have been agreed so far. Articles 27 and 
28  of  Regulation  (EU)  2022/2576,  therefore,  spell  out  the  rules  and  procedures  that  will 

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automatically  apply  between  Member  States  which  have  not  agreed  on  bilateral  solidarity 
arrangements. 

Solidarity has to be provided based on fair compensation pursuant to Article 13 of Regulation 
(EU)  2017/1938.  However,  possible  indirect  costs  resulting  from  judicial  or  arbitration 
proceedings after the curtailment of industry will remain to be limited to 100% of the price of 
gas.  The  reason  is  that  the  cost  of  compensation  to  industry  resulting  from  curtailment  is 
partially  covered  by  the  price  of  gas  and,  should  a  part  remain  from  litigation,  this  part  is 
highly uncertain  and  can largely  exceed the costs of the gas.  The uncertainty about  indirect 
compensation  costs  therefore  has  proved  to  be  a  major  obstacle  for  Member  States  to 
conclude bilateral solidarity agreements. However, Member States will still be able to agree 
on different compensation conditions. 

The  current  solidarity  obligation,  stemming  from  Regulation  (EU)  2017/1938,  applies 
between the Member States that are directly connected or via a third country. This proposed 
prolongation  will  maintain  the  extension  of  this  obligation  to  Member  States  with  LNG 
facilities, which, even if not directly connected, could provide solidarity to a Member State in 
an emergency if endowed with the infrastructure necessary to receive this LNG. 

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1.1.2.  The current situation: severe difficulties and risks for the EU’s security of gas supply 

persist 

The Union’s response under RepowerEU and following initiatives, including the measures set 
out  in  Regulation  (EU)  2022/2576,  helped  mitigate  the  consequences  of  the  crisis  and 
prepared the EU to  a degraded security of gas supplies  situation. In the Report on the main 
findings of the review of Regulation (EU) 2022/2576, in view of the general situation of gas 
supply to the Union1, the Commission concluded that the Regulation’s provisions have played 
an  important  role  in  stabilising  the  situation  of  the  gas  market  and  ensuring  adequate  gas 
supply to the Union, and that the Regulation is an important element of the EU gas security of 
supply tool kit. 

If not prolonged, the Regulation will cease to apply on 30 December 2023. 

However, as of the date of adoption of this proposal, severe difficulties in gas supplies to the 
Union persist. 

Due to the significant decrease in Russian pipeline gas imports over the past year, availability 
of gas supplies to the Union is considerably reduced compared to pre-crisis. With the current 
pipeline gas import levels, the Union is expected to receive approximately 20 bcm of Russian 
pipeline  imports  in  2023,  and  these  unreliable  imports  may  be  further  reduced  or  stopped. 
This figure would be approximately 110 bcm less than in 2021. 

Global  gas  markets  remain  very  tight  and  are  expected  to  remain  as  such  for  some  time  as 
only very limited new LNG liquefaction capacity globally is planned to be operational before 
2026. 

This  situation  has  negative  consequences  on  gas  prices  which,  despite  being  lower  than  the 
peak experienced in summer 2022 (when prices spiked above 300 EUR/MWh), remain more 
than twice as high than pre-crisis levels. Over the previous decade, prices had moved within a 
band of EUR 5 MWh to EUR 35 MWh and averaged around EUR 20/MWh. In early autumn 
2023 prices ranged between EUR 40 MWh and EUR 50 MWh. This level of prices still has 
inevitable  repercussions  on  the  EU  citizens’  purchasing  power  and  the  competitiveness  of 
European businesses. 

Market  volatility  is  also  a  consequence  of  the  market  tightness  and  represents  an  additional 
risk for the EU economy. Summer and autumn 2023 saw a number of episodes of significant 
volatility when prices increased by more than 50% in few weeks. This shows that gas markets 
are still fragile and may have large reactions to any unexpected and sudden shock to supply 
and demand, as was the case following the strike in Australian LNG facilities, the Middle East 
crisis  and  the  disruption  of  the  Balticconnector.  Under  these  conditions,  the  fear  of  scarcity 
may trigger large reactions with serious repercussions on prices. 

A number of risks can, if they materialise, fuel the fear of scarcity which, given the fragility 
of the market  due to  its  tightness, may trigger large reactions with  serious  repercussions on 
prices.  These  risks  include:  a  rebound  in  Asian  liquefied  natural  gas  (LNG)  demand  that 
further reduces the availability of gas on the global gas market, a cold winter which could lead 
to  an  increase  of  gas  demand  of  up  to  30  bcm,  extreme  weather  conditions  potentially 
affecting  hydropower  storage  or  nuclear  production  which  would  require  higher  recourse  to 

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gas-fired power generation and/or trigger increased demand for gas, and further possible gas 
supply  disruptions,  including  a  complete  halt  of  gas  imports  from  Russia  or  a  disruption  of 
existing critical gas infrastructure. 

Furthermore,  since  the  adoption  of  the  Report  on  the  main  findings  of  the  review  of 
Regulation  (EU)  2022/2576,  the  threat  landscape  has  deteriorated.  Armed  conflicts  of  high 
intensity are now hitting several of the key EU supply regions, in addition to Russia’s war of 
aggression against Ukraine (Azerbaijan, Middle East). 

Recent examples illustrate the likelihood and relevance of the risks related to the disruption of 
critical  gas  infrastructure.  In  September  2022,  the  NordStream  1  pipeline  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. In October 2023, the Balticconnector, an important pipeline 
connecting  Finland  to  Estonia,  was  disrupted.  The  investigation  is  examining  whether  the 
damage  was  external  and  made  by  a  vessel’s  anchor.  As  a  result  of  the  Balticconnector 
disruption, Finland is now no longer able to meet the N-1 criterion as part of the infrastructure 
standard  defined  in  Article  5  of  Regulation  (EU)  2017/1938.  The  N-1  criterion  ensures  that 
Member  States  take  measures  so  that  in  case  of  a  disruption  of  the  single  largest  gas 
infrastructure, they still have the technical capacity to satisfy their total demand during a peak 
day, As a result of the Balticconnector disruption, on 27 October 2023 Finland raised its crisis 
level  pursuant  to  Article 11 of Regulation  (EU)  2017/1938  from  “early  warning” to  “alert”, 
which is the last crisis level before an emergency. This new infrastructure incident illustrates 
the  likelihood  and  relevance  of  the  risks  related  to  new  disruptions  of  critical  gas 
infrastructure. 

It should be also noted that the significant reduction in demand for natural gas (-18% between 
August 2022 and September 2023) is contributing to preserve the gas balance in the EU. This 
reduction  is  a  result  of  economic  factors  (e.g.  high  prices)  and  administrative  measures 
adopted  by  Member  States  pursuant  to  Regulation  2022/1369  on  coordinated  gas  demand 
reduction  and  Regulation  (EU)  2023/706  that  prolonged  it.  A  possible  increase  in  demand, 
due to a rebound in the gas use in the residential, commercial and industrial sectors or in case 
the administrative measures aimed at reducing demand were not prolonged further, represents 
an  additional  risk  that,  given  the  current  situation  of  tight  global  gas  markets,  could 
undermine EU’s security of gas supply. 

In  three  subsequent  reports  of  December  2022,  February  and  July  2023,  the  International 
Energy Agency (IEA) has consistently been highlighting the risks for the EU security of gas 
supply  and  warning  against  complacency  in  the  light  of  the  improvement  of  the  situation 
compared to the peak of the crisis in summer 2022. According to the report of February 2023, 
“global  gas  supply  is  set  to  remain  tight  in  2023  and  the  global  balance  is  subject  to  an 
unusually wide range of uncertainties and exogenous risk factors. This includes the possibility 
of  complete  cessation  of  Russian  piped  gas  deliveries  to  the  European  Union,  as  well  as  a 
recovery of China’s LNG imports in line with the country’s long-term LNG contracts and a 
potential  lower  availability  of  LNG  supply”  The  IEA  warned  that  “the  improved  outlook 
should  not  be  a  distraction  from  the  measures  necessary  (…)  to  mitigate  the  European 
Union’s exposure to the exogenous risks”2. It developed stress scenarios with a halt to Russian 
gas  supplies,  LNG  supplies  remaining  tight  and  weather-related  demand  increases,  which 

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https://www.iea.org/reports/background-note-on-the-natural-gas-supply-demand-balance-of-the-
european-union-in-2023  

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could result in a potential supply-demand gap of 40 bcm in the EU. In its report of July 2023, 
the  IEA  highlighted  that  “risks  and  uncertainties  remain  ahead  of  the  2023/24  Northern 
Hemisphere winter” and “full storage sites are no guarantee against winter volatility and the 
risk of renewed market tensions”3. 

In addition, the European Network of Transmission System Operators (ENTSOG) published 
its  yearly  Winter  Supply  Outlook  with  a  summer  overview,  in  line  with  Article  8  of 
Regulation (EC) 715/2009. ENTSOG concluded that although the general security of supply 
situation in the EU has significantly improved, additional measures may be needed in case of 
a full Russian supply disruption. In addition, careful management of the storages throughout 
the winter of 2023-2024 is needed, as a 46% filling level is likely needed at the beginning of 
the injection season to achieve the 90% storage target set out by Regulation (EU) 2022/10324. 

In conclusion, in the light of the persisting severe difficulties and risks, the situation related to 
gas  supplies,  while  improved  compared  to  the  peak  of  the  crisis  in  summer  2022,  remains 
fragile.  The  Union’s  response  under  RepowerEU  and  following  initiatives,  including  the 
measures set out in Regulation (EU) 2022/2576, contributed to improve the situation. Should 
the relevant Union measures cease to apply, this would alter the stabilised but fragile situation 
the  Union  has  achieved  so  far  and  would  deteriorate  the  resilience  to  likely  future 
developments such as a complete halt of Russian imports. 

In the light of these persisting severe difficulties and risks for the EU’s security of gas supply, 
and not  to  alter the current  fragile balance,  it is necessary  and urgent  to prolong Regulation 
(EU) 2022/2576. Hence, this Proposal seeks to prolong by one year the period of application 
of  Regulation  2022/2576  enhancing  solidarity  through  better  coordination  of  gas  purchases, 
reliable price benchmarks and exchanges of gas across borders. The prolongation by one year 
is  necessary  and  proportionate  due  to  the  persistent  nature  of  the  severe  difficulties  and  the 
additional  risks,  and  the  uncertainty  of  the  current  situation  which  is  expected  to  continue 
during the whole of 2024. 

1.1.3.  Reasons for prolonging the Regulation’s provisions in the current situation 

The different provisions of Regulation (EU) 2022/2576, which the current proposal seeks to 
prolong,  are  necessary  to  address  the  above-mentioned  severe  difficulties  and  risks  for  the 
EU’s security of gas supply, for the following reasons. 

Better coordination of gas purchases (Chapter II – Section 1 and 2) 

In general, demand aggregation and better coordination of gas purchases help to ensure more 
equal access for undertakings across Member States, especially those in landlocked countries 
or without direct  access  to  international  markets,  to  new or additional gas  sources in  urgent 
situations where solidarity is required. It can, in the spirit of solidarity, reduce the detrimental 
effect of outbidding, which is driving prices up and help in particular smaller undertakings to 
benefit from more advantageous purchasing conditions resulting from aggregated demand. 

Pursuant  to  Regulation  (EU)  2022/2576,  the  Commission  designed  and  launched,  with  the 
assistance  of  a  service  provider,  the  demand  aggregation  and  joint  purchasing  mechanism 

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https://iea.blob.core.windows.net/assets/f45a2340-8479-4585-b26e-
ec5e9b14feca/GlobalGasSecurityReview2023IncludingtheGasMarketReportQ32023.pdf.  
 In early November 2023, the EU gas inventories reached a record high level at above 99% capacity. 
SO0052-23_Winter Supply Outlook 2023-24 with Summer 2024 Overview.pdf (entsog.eu) 

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under  the  name  of  “AggregateEU”.  Member  States  and  natural  gas  undertakings  as  well  as 
undertakings consuming gas have effectively participated in the demand aggregation and joint 
purchasing  mechanism  under  Regulation  (EU)  2022/2576  (“AggregateEU”)  and  contributed 
to  achieve, by October 2023, a total  aggregation of 44.04 bcm  of demand for gas, which is 
equivalent  to  more  than  three  times  the  mandatory  amounts  for  demand  aggregation.  The 
matched volumes in the same period amounted to 34.77 bcm, corresponding to around 10% of 
EU  consumption  in  2022.  This  shows  that  "AggregateEU”  attracted  significant  interest  by 
market participants. 

The  Commission  also  implemented  supporting  measures  as  mandated  by  the  Regulation, 
including  those  on  transparency  and  information  exchange,  governance  of  the  EU  Energy 
Platform  and  mandatory  use  of  “AggregateEU”.  Under  the  transparency  and  information 
exchange provisions of the Regulation, the Commission issued two recommendations by July 
2023. In these instances, the Commission considered that further coordination with regards to 
tenders  for  the  purchase  of  gas  was  needed,  as  it  could  improve  the  functioning  of  joint 
purchasing  or prevent  a  negative impact  on the internal  market,  on security of supply or on 
energy solidarity. 

In  the  Report  on  the  main  findings  of  the  review  of  Regulation  (EU)  2022/2576,  the 
Commission  concluded  that  the  “AggregateEU”  mechanism,  based  on  the  demand 
aggregation  provisions  of  the  Regulation,  provided  additional  opportunities  for  European 
buyers  (undertakings  established  in  the  EU  and  in  the  Energy  Community  Contracting 
Parties)  to  procure  gas  from  reliable  suppliers  at  competitive  conditions  as  well  as  market 
transparency on demand and supply, thereby contributing to decreasing volatility of markets. 

In view of the above, demand aggregation and better coordination of gas purchases remain a 
valuable  tool  to  address  the  above-mentioned  severe  difficulties  and  risks  for  the  EU’s 
security of gas supply. The relevant provisions should therefore be prolonged by one year. 

Measures to enhance the use of LNG facilities, gas storage facilities and pipelines (Chapter II 
– Section 3) 

The  provisions  of  Regulation  (EU)  2022/2576  increasing  the  transparency  around  available 
capacities and services offered at LNG terminals and gas storage sites facilitated the increased 
influx of LNG into the Union and facilitated the accommodation of the altered gas flows. The 
situation has not changed since the adoption of the Regulation as the EU still needs to import 
large volumes of LNG to compensate for the Russian pipeline supply and it will continue to 
do so in the foreseeable future. This is why enhanced transparency around LNG terminals and 
storage sites remains necessary. 

Regulation  (EU)  2022/2576  requires  having  use-it-or-lose-it  mechanisms  in  place  at  all 
interconnection  points  in  Europe,  whereas  this  was  only  a  requirement  for  certain 
interconnection  points  in  the  past.  Such  mechanisms  enable  the  system  to  react  to  possible 
congestion resulting from changed gas flows in a swift and flexible manner. 

The measures to enhance the use of LNG facilities, gas storage facilities and pipelines remain 
a  valuable  tool  to  address  the  above-mentioned  severe  difficulties  and  risks  for  the  EU’s 
security of gas supply and the relevant provisions should therefore be prolonged by one year. 

Measures  to  prevent  excessive  gas  prices  and  excessive  intra-day  volatility  in  energy 
derivatives markets (Chapter III) 

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Due  to  the  difficulties  to  assess  the  accuracy  of  LNG  prices  prevailing  in  the  marketplace, 
Regulation (EU) 2022/2576 tasks the European Union Agency for the Cooperation of Energy 
Regulators (ACER) to collect all the data on transactions pertaining to LNG deliveries to the 
Union  necessary  to  establish  a  daily  LNG  price  assessment  and  a  daily  LNG  benchmark, 
determined as the spread between the LNG daily price assessment and the settlement price for 
the TTF futures front-month. 

On trading, Regulation (EU) 2022/2576 includes a measure to manage excess volatility in gas 
and electricity derivatives markets, while preserving the price formation processes. The intra-
day  price  spike  collar  aims  at  avoiding  excessive  price  volatility  and  prevent  extreme  price 
spikes in prices on energy derivative market over a trading day. 

As concluded in the Report on the main findings of the review of Regulation (EU) 2022/2576, 
since gas markets still feature episodes of significant volatility, the provisions in Chapter III –
of  Regulation  (EU)  2022/2576  may  play  a  role  in  preventing  excessive  price  spikes  and  in 
stabilising the market. The episodes of pronounced volatility observed in summer and autumn 
2023 reinforce the conclusion that gas markets are still fragile and vulnerable to extreme price 
spikes. The intra-day volatility mechanism could remain a valuable tool to address the above-
mentioned  severe  difficulties  and  risks  for  the  EU’s  security  of  gas  supply  and  the  relevant 
provisions should therefore be prolonged by one year. 

Measures for the case of a gas emergency (Chapter IV) 

Regulation  (EU)  2022/2576  temporarily  complemented  the  Gas  Security  of  Supply 
Regulation, notably by making the solidarity mechanism applicable by default in absence of 
bilateral agreements, as well as by extending the solidarity mechanism to liquified natural gas 
(LNG) and critical gas volumes (CGV) for electricity. In addition, a provision was added to 
facilitate demand reduction by protected customers, as well as a provision to safeguard cross-
border flows. 

In December 2022, the Commission carried out a joint solidarity ‘dry run’ exercise with EU 
Member States  and ENTSOG, which tested the  emergency rules  and procedures,  as well as 
the solidarity mechanism. In addition, the Commission circulated a questionnaire to the Gas 
Coordination  Group  to  gather  feedback  on  e.g.  the  provisions  set  out  in  Regulation  (EU) 
2022/1576. The outcomes of the ‘dry run’ exercise and the questionnaire are further detailed 
in the Report on the main findings of the review of Regulation 2022/2576. 

Based on the findings  of  the Report  on the main findings  of the review  of Regulation  (EU) 
2022/2576 and the new threat landscape, the Commission concludes that the concepts set out 
in Chapter IV remain essential to mitigate possible gas crises and reduce the collective costs 
of such a crisis, and for facilitating ongoing or future demand reduction efforts. In particular, 
the  absence  of  bilateral  agreements  is  a  structural  vulnerability  that  persists,  meaning  that a 
prolongation of default rules is necessary. Critical gas volumes for electricity generation too 
remain crucial to prevent that a potential gas crisis does not spread to the electricity system. 
The  values  for  critical  gas  volumes  in  Annex  I  remain  valid  for  the  period  of  a  prolonged 
application of the Regulation until the end of 2024. 

In  addition,  the  supply  landscape  of  the  EU  has  changed  significantly,  with  LNG  being  the 
main supply source in 2023. Solidarity should therefore still be extended to include Member 
States with LNG facilities, to reflect this changed reality. Lastly, the concepts of non-essential 
consumption  of  protected  customers  and  the  additional  safeguards  for  cross-border  flows  in 

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an emergency were assessed to be beneficial concepts for preventing and mitigating crises and 
therefore useful provisions to prolong. 

1.2 

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  ensure  that  citizens  can 
benefit  from  secure  gas  supplies  and  that  customers  are  protected  against  major  supply 
disruptions. It also furthers the objective of diversification of natural gas supply. 

The provisions of Regulation (EU) 2022/2576 are consistent with existing initiatives, such as 
the  “REPowerEU”  Communication,  the  proposal  for  a  “Hydrogen  and  Gas  Market 
Decarbonisation  Package”  and  the  “Demand  Reduction  Regulation”  with  the  accompanying 
“Save Gas for a Safe Winter” Communication. They are complementary to the EU legislation 
on internal market and security of supply. 

Regulation  (EU) 2022/2576  reinforces  and complements  the Regulation  (EU) 2017/1938  on 
Gas Security of Supply. The latter already includes an obligation to provide solidarity, as well 
as the notion of solidarity protected customers, which includes households and under certain 
circumstances  essential  social  services  and  district  heating.  Regulation  (EU)  2022/2576 
extends  this  solidarity  obligation  to  safeguard  the  supply  of  critical  volumes  for  gas  fired 
power  plants  and  operationalises  it  through  a  default  mechanism  in  case  of  absence  of 
bilaterally agreed solidarity arrangements, which now also apply to Member States with LNG 
facilities. 

The proposal  also  fully  reflects  the  objective  of  Regulation  (EU) 2022/1369  on coordinated 
demand-reduction  measures  for  gas  to  pro-actively  reduce  gas  demand  to  mitigate  potential 
supply  disruptions  due  to  Russia’s  war  of  aggresson  against  Ukraine.  Demand  reduction 
remains a key pillar of our security of supply response and the proposal strengthens this pillar 
by allowing Member States to undertake savings from non-essential consumption of protected 
customers, while still protecting vulnerable consumers. 

Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 
on  conditions  for  access  to  the  natural  gas  transmission  networks  and  repealing  Regulation 
(EC)  No  1775/2005  contains,  in  its  Annex  1,  point  2.2.5,  provisions  regarding  a  long  term 
“use-it-or-lose-it”  mechanism.  These  provisions  have  been  adopted  to  prevent  blocking  of 
transport capacities by market participants in times when they cannot or do not plan to utilise 
them.  Due  to  the  crisis  situation,  Regulation  2022/2576  reduces  administrative  burden  and 
ensures  the  application  of  these  provisions.  In  particular,  it  reduces  the  time  which  elapses 
when the capacity is not used from six months to one month. 

Following  the  Russian  full-scale  invasion  of  Ukraine,  the  EU  has  set  out  the  REPowerEU 
Plan with the aim to end the EU's dependency on Russian fossil fuels, as soon as possible and 
at the latest by 2027. To achieve this, the REPowerEU Plan sets out the EU Energy Platform 
and  announced  a  mechanism  for  demand  aggregation  and  joint  purchasing.  Regulation 
2022/2576,  whose  provisions  the  current  proposal  seeks  to  prolong,  established  such 
mechanism. The proposed initiative is fully consistent with the goals set out in REPowerEU. 

This  proposal  for  prolonging  the  period  of  application  of  Regulation  (EU)  2022/2576  is 
therefore complementary to existing provisions and the recent initiatives in the energy sector, 
safeguarding the security of gas supply, helping to stabilise the market and keeping the prices 
in check, and contributing to the diversification of gas supplies. 

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Lastly,  this  proposal  is  complementary  to  efforts  of  the  European  Securities  and  Markets 
Authority  (ESMA),  which  has  issued  on  12  October  2023  a  supervisory  briefing  on  the 
calibration  of  circuit  breakers,  as  mandated  in  Directive  (EU)  2014/65,  that  aims  at 
strengthening the functioning of such circuit breakers across all asset classes. 

1.3 

Consistency with other Union policies 

European Green Deal 

Regulation (EU) 2022/2576, whose provisions the current proposal seeks to prolong, aims at 
fundamentally reinforcing security of supply and tackling high and volatile energy prices. It is 
also consistent with the longer-term objective of the Green Deal. The provisions on demand 
aggregation and joint purchasing, establishing ways of purchasing gas in a more coordinated 
way,  is  also  in  line  with  the  decarbonisation  path  indicated  in  the  Green  Deal  and  the 
RepowerEU. 

Internal Market Policy 

The  proposal  is  compatible  with  the  rules  on  the  internal  market  for  energy.  Functioning 
cross-border  energy  markets  are  key  to  ensure  security  of  supply  in  a  situation  of  supply 
shortages. 

Competition Policy 

The rules on demand aggregation and joint purchasing can be applied in a manner compatible 
with  EU  competition  rules,  which  allow  joint  purchasing  between  competing  undertakings 
under  certain  conditions,  and  which  are  applied  in  the  light  of  prevailing  market 
circumstances. 

2. 

2.1 

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. As explained above, severe difficulties 
and risks for the EU security of gas supply persist. Due to the significant decrease in Russian 
pipeline  gas  imports  over  the  past  year,  availability  of  gas  supplies  to  the  Union  is 
considerably  reduced  compared  to  pre-crisis.  Global  gas  markets  remain  very  tight  and  are 
expected to remain as such for some time as only very limited new LNG liquefaction capacity 
globally is planned to be operational before 2026. Summer and autumn 2023 saw a number of 
episodes of significant volatility which show that gas markets are still fragile and may  have 
large reactions to  any unexpected and sudden shock to  supply and demand, as was  the case 
following the strike in Australian LNG facilities, the Middle East crisis and the disruption of 
the Balticconnector). 

A number of risks can, if they materialise, fuel the fear of scarcity which, given the fragility 
of the market  due to  its  tightness, may trigger large reactions with  serious repercussions on 
prices.  These  risks  include  a  rebound  in  Asian  liquefied  natural  gas  (LNG)  demand  that 
reduces  the  availability  of  gas  on  the  global  gas  market,  extreme  weather  conditions 
potentially  affecting  hydropower  storage  or  nuclear  production  which  would  require  higher 

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recourse to gas-fired power generation, and further possible gas supply disruptions, including 
a  complete  halt  of  gas  imports  from  Russia  or  a  disruption  of  existing  critical  gas 
infrastructure. 

Therefore,  there  is  an  urgent  need  for  continued  measures  for  more  coordinated  and 
immediate  action,  in  order  to  be  better  prepared  for  possible  further  gas  disruptions  and 
periods of market volatility in the course of the next year. The measures to be continued under 
the instrument for a limited period of time allow all Member States and market participants to 
prepare  for  and  deal  with  possible  further  supply  shortages  and  market  volatility  in  a 
coordinated manner. The measures of Regulation (EU) 2022/2576 to be prolonged are taken 
in a spirit of solidarity between Member States. For example, demand aggregation and joint 
purchasing can strengthen Union solidarity by supporting particularly those undertakings that 
were previously  purchasing  gas only  or mainly from Russian suppliers and helping them to 
obtain  supplies  from  alternative  natural  gas  suppliers  at  competitive  conditions.  In  addition, 
price  assessments  and  benchmark  spreads  published  under  Regulation  (EU)  2022/2576  are 
crucial to  bringing  about more solidarity between Member States in  procuring limited LNG 
supplies.  Furthermore,  Regulation  (EU)  2022/2576  establishes  temporary  measures,  for  the 
case of a gas emergency, to distribute gas fairly across borders, to safeguard gas supplies for 
the  most  critical  customers  and  to  ensure  the  provision  of  cross-border  solidarity  measures. 
This ensures that a localised gas crisis does not spread over several Member States. 

It is therefore justified to base the proposed instrument on Article 122(1) TFEU. 

2.2 

Subsidiarity (for non-exclusive competence)  

The  provisions  of  Regulation  (EU)  2022/2576  and  their  proposed  prolongation  are  fully  in 
line  with  the  subsidiarity  principle.  Because  of  the  scale  and  the  significant  effect  of  the 
severe  difficulties  and  risks  for  the  EU  security  of  gas  supply,  there  is  a  need  for  EU  level 
action.  An  EU-wide  approach  through  demand  aggregation  and  better  coordination  of 
supplies  and  more  efficient  use  of  LNG  terminals,  gas  storages  and  pipelines,  in  a  spirit  of 
solidarity,  is  necessary  to  minimise  the  risk  of  potential  major  disruptions.  This  can  be 
regulated efficiently at EU level instead of national level. 

The  measures  to  prevent  excessive  gas  prices  and  excessive  intra-day  volatility  in  energy 
derivatives market also call for action at the EU level given the integrated nature of gas and 
financially related markets. 

A coordinated approach at EU level is also necessary on security of supply measures. Such a 
coordination  is  crucial  to  ensure  that  Member  States  have  the  possibility  to  respond  in  an 
efficient and timely manner to solidarity requests. While Member States will continue to have 
the  possibility  to  enter  into  bilateral  solidarity  arrangements,  default  rules  will  be  in  place 
until  such  arrangements  are  concluded,  allowing  for  all  EU  Member  States  to  benefit  from 
solidarity. This will ultimately ensure that the provision of bilateral solidarity is not hindered 
by the lack of  administrative and  financial  arrangements between the Member States,  while 
also allowing Member States to complement the default rules with negotiated conditions. 

Given the unprecedented nature of the gas supply crisis and its cross-border 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  effectively  address  the  risk  of  serious  economic  difficulties 
resulting  from  price  hikes  or  significant  supply  disruptions.  Only  continued  EU  action 
motivated by a spirit of solidarity between Member States can ensure that supply disruptions 
and market volatility 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. 

2.3 

Proportionality 

The  provisions  of  the  Regulation  and  their  proposed  prolongation  comply  with  the 
proportionality  principle.  The  measure  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.  The  measures  set  out  in  the 
proposal do not go beyond what is necessary to achieve their objectives and are proportionate 
to those objectives. 

More  specifically,  the  provisions  on  demand  aggregation  and  joint  purchasing  that  this 
proposal seeks to prolong are generally to be implemented on a voluntary basis, with only a 
limited  exception  as  regards  mandatory  participation  in  demand  aggregation  for  a  certain 
volume  of  gas.  Private  undertakings  remain  entirely  free  to  conclude  or  not  the  gas  supply 
contracts. 

The  extension  of  solidarity  to  critical  gas-fired  power  plants  imposes  restrictions  on  market 
operators that are necessary to ensure security of gas supply during a situation of reduced gas 
supply and increased demand during the winter season. They build on existing measures laid 
down  in  respectively  Regulations  (EU)  2022/1369  and  (EU)  2017/1938,  aiming  at  making 
those measures more effective under the current circumstances. 

The obligation on market operators to provide ACER with information on LNG transactions 
is  aligned  with  market  operators’  existing  obligations  under  REMIT  and  ACER  will  keep 
sensitive business information confidential. 

The measure to limit intra-day price volatility lays down requirements for trading venues and 
traders to allow energy companies to continue participating in gas and electricity markets and 
meet their hedging needs, thus ensuring security of energy supply for final consumers. At the 
same time, the provisions of the Regulation leave discretion to the trading venues to establish 
the applicable calculation method to  determine their price boundaries relative to  a reference 
price. 

The  duration  of  the  prolongation  is  proportionate  due  to  the  persistent  nature  of  the  severe 
difficulties for energy supply and the resulting risks for prices and security of supply which 
are expected to continue at least during the whole of 2024 as more structural changes of the 
market conditions are only expected in the course of 2025. 

2.4 

Choice of the instrument 

Taking into account the dimension of the energy crisis and the scale of its social, economic 
and financial impact, the provisions that the current proposal seeks to prolong are contained in 
a  Regulation,  which  is  of  general  scope  and  directly  and  immediately  applicable.  The 
prolongation of the period of application of these provisions  should, therefore, also be done 
through the adoption of a Regulation. 

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3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

3.1 

Stakeholder consultations 

Due to the urgency to prepare the proposal for prolongation of Regulation (EU) 2022/2576 so 
that it can be adopted on time by the Council, a stakeholder consultation could not be carried 
out. However, matters related to the implementation of the Regulation, including the need for 
continued application of its provisions, have been discussed in  relevant  fora, such  as the  ad 
hoc Steering Board and the Industrial Advisory Group. 

3.2 

Impact assessment 

This proposal to prolong the “Gas Solidarity Regulation” is an emergency measure based on 
Article 122(1) TFEU to address persisting severe difficulties and risks for the EU’s security of 
gas  supply.  For  this  reason,  an  impact  assessment  could  not  be  carried  out.  However,  the 
proposal  draws  on  the  conclusions  of  the  Report  on  the  main  findings  of  the  review  of 
Regulation (EU) 2022/2576. 

3.3 

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 

The  budgetary  implications  are  limited  to  the  need  to  finance  the  extension  of  the  service 
contract  between  the  Commission  and  the  service  provider  that  operates  the  demand 
aggregation platform “Aggregate EU”. 

The budgetary impact on the EU budget associated to this proposal also concerns the human 
resources  and  other  administrative  expenditures  of  the  European  Commission’s  Directorate 
General (DG) for Energy, as well as of ACER. The proposal seeks to prolong provisions that 
established  an  enhanced  Gas  Security  of  Supply  architecture,  with  new  obligations  for 
Member  States  and,  correspondingly,  a  reinforced  role  for  DG  Energy  in  a  wide  range  of 
areas compared to the period before the initial Regulation – namely: 

Overall management and implementation of the Regulation (3 FTE), 

Work  to  design  competition  law  compliant  implementation  of  gas  purchasing  consortium, 
requiring exchanges with industry (2 FTEs), 

Assessment of Member States requests for allowances regarding higher critical gas volumes; 
follow-up to solidarity requests; facilitation of the implementation of solidarity agreements (1 
FTE), 

Administrative assistance (2 FTE), 

The  proposal  also  sets  out  new  tasks  for  ACER  to  collect  LNG  transaction  data  for  the 
purpose of establishing an LNG benchmark (5 FTE). 

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This proposal does not require any budgetary resources additional to those already allocated 
in  the  context  of  the  adoption  of  Regulation  (EU)  2022/2576  and  set  out  in  the  financial 
statement accompanying Regulation (EU) 2022/2576. 

5. 

5.1 

OTHER ELEMENTS 

Detailed explanation of the specific provisions of the proposal 

The changes proposed are targeted and limited in scope to prolong by one year the period of 
application of the provisions of Regulation 2022/2576. 

In Article 31, the period of application of the Regulation is proposed to be changed from 30 
December  2023  (the  date  resulting  from  one  year  from  the  entry  into  force  of  Regulation 
2022/2576) to 31 December 2024. 

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2023/0444 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EU) 2022/2576 as regards the prolongation of its period of 
application 

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) 

(5) 

Council  Regulation  (EU)  2022/25765  was  adopted  in  view  of  the  gas  supply  crisis 
caused  by  Russia’s  unprovoked  and  unjustified  full-scale  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. It aims at mitigating the impact on the price for 
gas by addressing its demand and supply, ensuring security of supply across the entire 
Union, and enhancing solidarity. 

Regulation (EU) 2022/2576 provides a temporary legal framework in respect of better 
coordination of gas purchases, measures to prevent excessive gas prices and excessive 
intra-day volatility in energy derivatives markets, and measures for the case of a gas 
emergency. 

The period of the application of Regulation (EU) 2022/2576 was originally limited to 
30 December 2023. 

In accordance with Article 30 of Regulation (EU) 2022/2576, the Commission carried 
out a review of that Regulation, the results of which are summarised in the Report on 
the  main  findings  of  the  review  of  the  Regulation  of  28  September  2023  (‘the 
Report’)6.  The  Report  concluded  that  Regulation  (EU)  2022/2576  has  played  an 
important role in stabilising the situation of the gas market and ensuring adequate gas 
supply to the Union, and that it is an important element of the Union gas security of 
supply tool kit. 

Regulation  (EU)  2022/2576  sets  up  a  demand  aggregation  platform  and  requires 
Member  States  to  take  appropriate  measures  to  ensure  that  natural  gas  undertakings 
and undertakings consuming  gas under their jurisdiction participate in  the process  of 
demand aggregation organised by the service provider as one of the possible means to 
meet  the  filling  targets  referred  to  in  Regulation  (EU)  2017/1938  of  the  European 

5 

6 

Council  Regulation  (EU)  2022/2576  of  19  December  2022  enhancing  solidarity  through  better 
coordination  of  gas  purchases,  reliable  price  benchmarks  and  exchanges  of  gas  across  borders  (OJ  L 
335, 29.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2576/oj).  
COM(2023) 547 final. 

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(6) 

(7) 

(8) 

(9) 

Parliament and of the Council7, as amended by Regulation (EU) 2022/1032. Member 
States  and  natural  gas  undertakings  as  well  as  undertakings  consuming  gas  have 
effectively participated in the demand aggregation and joint purchasing mechanism set 
up under Regulation (EU) 2022/2576 (“AggregateEU”) and contributed to achieve, by 
October 2023, a total aggregation of 44.04 bcm of demand for gas, which is equivalent 
to more than three times the mandatory amounts for demand aggregation. This shows 
that "AggregateEU” attracted significant interest by market participants. 

The  Report  concluded  that  the  “AggregateEU”  mechanism  provided  additional 
opportunities  for  European  buyers  to  procure  gas  from  reliable  suppliers  at 
competitive conditions, as well as market transparency on demand and supply, thereby 
contributing to decreasing volatility of markets. 

As regards market oversight rules, Regulation (EU) 2022/2576 requires trading venues 
on  which  energy-related  commodity  derivatives  are  traded  are  to  set  up,  for  each 
energy-related commodity derivative traded on it, an intra-day volatility management 
mechanism  based  on  an  upper  and  lower  price  boundary  (‘price  boundaries’)  that 
defines  the  prices  above  and  below  which  orders  may  not  be  executed  (‘intra-day 
volatility  management  mechanism’).  The  Report  found  that  gas  markets  still  feature 
episodes  of  significant  volatility  and  that  the  intraday  volatility  management 
mechanism may play a role in preventing excessive price spikes and in stabilising the 
market. 

Pursuant  to  Regulation  (EU)  2022/2576,  the  European  Union  Agency  for  the 
Cooperation  of  Energy  Regulators  (ACER)  is  required  to  publish  daily  liquified 
natural gas (LNG) price assessments and daily LNG benchmark on the basis of LNG 
market data on transactions that ACER should systematically collect and process. The 
LNG  price  assessments  and  benchmark  have  provided  the  market  with  greater 
transparency  thereby  enhancing  market  players’  ability  to  secure  LNG  supplies  at 
competitive prices. The Report found that the LNG price assessment and benchmark 
have proven useful in stabilising the market. 

Regulation (EU) 2022/2576 provides for a number of security of supply and solidarity 
provisions  for  the  case  of  a  gas  emergency  to  better  coordinate  the  organisation  of 
energy  solidarity  measures  in  an  emergency  situation.  Its  Chapter  IV  temporarily 
complemented  Regulation  (EU)  2017/1938,  notably  by  making  the  solidarity 
mechanism  applicable  by  default  in  absence  of  bilateral  agreements,  as  well  as  by 
extending the solidarity mechanism to LNG and critical gas volumes for electricity. In 
addition, a provision was added to facilitate demand reduction by protected customers, 
as well as a measure to  safeguard cross-border flows. The Report concluded that the 
temporary  security  of  supply  and  solidarity  provisions  have  proven  to  be  useful  to 
prevent and mitigate a gas crisis, and facilitate demand reduction efforts. 

(10)  The conclusion of the Report that severe difficulties persist for the Union’s security of 
energy  supply  still  holds  true.  The  global  situation  on  the  gas  market  remains  very 
tight.  Gas  prices  are  still  considerably  higher  than  pre-crisis  with  inevitable 
consequences on Union citizens’ purchasing power and the competitiveness of Union 
businesses. Market volatility is another aspect of the current situation. Recent episodes 
of  significant  volatility  in  summer  and  autumn  2023,  caused  by  events  such  as  the 

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 (OJ L 280, 28.10.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/1938/oj). 

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strike in Australian LNG facilities, or the disruption of the Balticconnector, show that 
markets are still fragile and vulnerable to even relatively small shocks on demand and 
supply.  The  ongoing  crisis  in  the  Middle  East  constitutes  an  additional  significant 
geopolitical  risk  with  potential  impact  on  prices  and  gas  supply.  Under  these 
conditions, the fear of scarcity may trigger large reactions with  serious repercussions 
on prices. 

(11)  Due  to  the  significant  decrease  in  Russian  pipeline  gas  imports  over  the  past  year, 
availability  of  gas  supplies  to  the  Union  is  considerably  reduced  compared  to  pre-
crisis.  With  the  current  pipeline  gas  import  levels,  the  Union  is  expected  to  receive 
approximately 20 bcm of Russian pipeline imports, if these unreliable imports are not 
disrupted  altogether.  This  would  be  approximately  110  bcm  less  than  in  2021.  This 
reduction constitutes a risk that gas shortages will occur in the Union. 

(12)  Global  gas  markets  currently  are  very  tight  and  are  expected  to  remain  tight  for  a 
certain time. Global LNG supply grew only modestly in the past two years because of 
limited liquefaction capacity additions, outages at major export facilities and declining 
feedgas  supply  at  LNG  plants.  Significant  new  LNG  liquefaction  capacity  is  set  to 
come online only in the course of 2025. Hence, market balances remain precarious in 
the  immediate  future.  This  situation  has  negative  consequences  on  gas  prices  which, 
despite  being  lower  than  the  peak  experienced  in  summer  2022,  remain  more  than 
twice as high than pre-crisis levels. 

(13) 

In view of the current tight market conditions, prices may spike again on the back of 
unpredictable  events  and  sudden  shocks  such  as  a  rebound  in  Asian  LNG  demand 
reducing  the  availability  of  gas  on  the  global  gas  market,  a  cold  winter  which  could 
lead  to  an  increase  of  gas  demand  of  up  to  30  bcm,  extreme  weather  potentially 
affecting the hydropower storage and nuclear production due to low water levels, and 
the subsequent increase in demand for gas fired power generation, further disruptions 
of critical infrastructures, after the acts of sabotage against the NordStream pipelines 
in September 2022 and the disruption of the Balticconnector pipeline in October 2023, 
and a deterioration of the geopolitical environment and threat landscape in supplying 
regions, for example with the crisis in the Middle East. 

(14)  Given  the  current  tight  supply  and  demand  balance,  even  moderate  disruption  to  the 
supply of gas or even the mere threat of such disruptions could have a dramatic impact 
on the gas market and could cause serious and lasting harm to the economy and to the 
citizens of the Union. 

(15)  The  current  crisis  is  exposing  the  entire  Union  to  risks  of  energy  shortage  and  high 
energy prices. The persistent severe difficulties still affecting the Union’s security of 
gas supply, as well as any new additional ones, and the level of gas prices can impact 
negatively the economic situation, industrial competitiveness and citizens’ purchasing 
power. 

(16)  Since  the  Union  is  a  single  market,  gas  shortage  in  one  Member  State  would  have 
severe  consequences in  all other Member States through physical  supply shortage of 
gas,  volatility  of  prices  or  disruption  of  industrial  chains  resulting  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 thus help contain gas price volatility. 

(17)  The  prolongation  of  the  period  of  application  of  Regulation  (EU)  2022/2576 
constitutes an exceptional and time-limited measure, in response to persistent and new 

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severe difficulties in the supply of energy, which entail a risk of imminent crisis. The 
prolongation will clearly decrease volatility of markets and enhance solidarity. 

(18)  The  need  to  act  is  urgent.  Not  prolonging  the  period  of  application  of  Regulation 
2022/2576, which will cease to  apply  on 30 December 2023,  would risk altering the 
stabilised but fragile situation the Union has achieved so far and would deteriorate the 
resilience  to  likely  future  developments  such  as  a  complete  halt  of  Russian  gas 
imports. A prolongation of the period of application of Regulation (EU) 2022/2576 is 
also  consistent  with  the  “RepowerEU  Plan”8  which  was  meant  to  protect  Union 
citizens and economy against excessive prices and energy supply shortages.  

(19)  The  persisting  energy  supply  tensions  justify  a  prolongation  of  the  demand 
aggregation  and  joint  purchasing  provisions  in  Regulation  (EU)  2022/2576,  as  they 
help  ensure  more  equal  access  for  undertakings  across  Member  States  to  new  or 
additional gas  sources.  They also  help  ensure better conditions  than might  otherwise 
have  applied  to  undertakings  purchasing  the  gas  through  the  use  of  the  service 
provider, thereby contributing to security of supply. 

(20)  Prolonging  the  provisions  on  demand  aggregation  and  joint  purchasing  would 
strengthen Union solidarity in purchasing and distributing gas. In a spirit of solidarity, 
the  prolonged  availability  of  demand  aggregation  and  joint  purchasing  will  support 
particularly  those  undertakings  that  were  previously  purchasing  gas  only  or  mainly 
from Russian suppliers by helping them to obtain supplies from alternative natural gas 
suppliers or providers in advantageous conditions. 

(21) 

In  order  to  support  market  participants  throughout  this  winter  and  next  gas  storage 
filling  season,  continuity  in  the  operation  of  the  demand  aggregation  and  joint 
purchasing  mechanism  (“AggregateEU”)  should  be  ensured.  This  includes  the 
possibility  of  extending  the  current  contract  with  the  service  provider  in  line  with 
Regulation (EU, Euratom) 2018/10469. 

(22)  With  a  view  to  the  advantages  for  consumers,  price  stability  and  energy  supply 
security, a prolongation is also warranted with respect to the provisions establishing an 
intraday  volatility  management  mechanism  and  a  price  assessment  and  LNG 
benchmark. 

(23) 

In  view  of  the  persisting  risks  for  stable  gas  supplies  set  out  above,  it  is  also 
appropriate to prolong to provisions for the case of a gas emergency (Chapter IV) for 
another  year,  in  line  with  the  findings  on  the  positive  effect  of  the  provisions  in  the 
Report. The values for critical gas volumes in Annex I remain valid for the period of a 
prolonged application of the Regulation until the end of 2024. 

(24)  The extended application of Regulation (EU) 2022/2576 should be temporary, should 
enter into force on the 31 December 2023 in order to ensure a continued application of 
the relevant provisions, and should last one year, namely until 31 December 2024. The 

8 

9 

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, 18.5.2022. 
Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on 
the  financial  rules  applicable  to  the  general  budget  of  the  Union,  amending  Regulations  (EU)  No 
1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) 
No  1316/2013,  (EU)  No  223/2014,  (EU)  No  283/2014,  and  Decision  No  541/2014/EU  and  repealing 
1,  ELI: 
Regulation 
http://data.europa.eu/eli/reg/2018/1046/oj). 

(EU,  Euratom)  No 

30.7.2018, 

966/2012 

(OJ  L 

193, 

p. 

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prolongation by one year is necessary and proportionate due to the persistent nature of 
the severe difficulties for energy supplies and the resulting risks for prices and security 
of  supply  which  are  expected  to  continue  at  least  during  the  whole  of  2024.  The 
extension  of  the  period  of  application  of  Regulation  (EU)  2022/2576  should  not 
introduce any additional obligations beyond the temporary prolongation, in particular 
as  regards  measures  taken  by  Member  States  to  ensure  participation  in  demand 
aggregation. 

(25)  Regulation (EU) 2022/2576 should therefore apply until 31 December 2024. 

(26)  Since the objective of this Regulation cannot be sufficiently achieved by the Member 
States,  but  can  rather  be  better  achieved  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, as set 
out  in  that Article, this Regulation  does not  go beyond what  is  necessary in  order to 
achieve that objective. 

(27)  Regulation (EU) 2022/2576 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Amendments to Regulation (EU) 2022/2576 

Regulation (EU) 2022/2576 is amended as follows: 

(1) 

In Article 31, the second paragraph is replaced by the following: 

‘It shall apply until 31 December 2024.’ 

(2) 

In Annex I, footnote (1) is replaced by the following: 

‘The  figures  in  Annex  I,  parts  (a)  and  (b),  are  based  on  data  from  the  winter  adequacy 
assessment pursuant to  Article 9 of Regulation (EU) 2019/941 by the European Network of 
Transmission  System  Operators  for  Electricity  (ENTSO-E),  except  for  Malta  for  which  the 
electricity  generation  relies  exclusively  on  LNG  deliveries  with  no  significant  storage 
capacities. Given the specificity of the low-calorific gas, the values for the Netherlands in this 
table should be multiplied with a conversion factor of 37,89 divided by 35,17. Annex I, part 
(a),  represents  the  individual  monthly  volumes  calculated  by  ENTSO-E  for  the  months 
December 2022 to March 2023; the figures in Annex I, part (b), for the months April 2023 to 
December 2024 represent the average of the values in the period between December 2022 and 
March 2023.’ 

(3) 

In Annex I (b), the first sentence is replaced by the following: 

‘Maximum critical gas volumes for electricity security of supply pursuant to Article 23 for the 
period between April 2023 to December 2024 (values in million cubic metres):’ 

Article 2 

Entry into force and application 

This Regulation shall enter into force on 31 December 2023. 

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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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