EU to propose joint gas buying in response to high energy prices – document

(EurActiv, 13 Dec 2021) The European Commission will propose a voluntary system for EU countries to jointly buy gas to form strategic reserves in response to soaring energy prices, according to a document shared with countries ahead of a summit this week.

European gas prices surged to record highs in October amid tight supplies and high demand from global economies recovering from the COVID-19 pandemic. Prices have retreated from those peaks, but crept back up in recent weeks amid cold winter weather and lower than expected imports from Russia.

The soaring energy prices have left governments scrambling to use subsidies and tax breaks to shield consumers from high bills and prompted calls from some countries for an EU system of joint gas buying. A proposal to update European gas market rules, which the European Commission is due to publish on Wednesday (15 December), would set up such a system. “The proposals will include an enabling framework for the joint procurement of gas strategic stocks by regulated entities on a voluntary basis,” the Commission said in a document circulated to countries ahead of an EU leaders summit on Thursday and seen by Reuters.

The system will “contribute to EU coordinated measures in case of Union wide emergency”, it said.

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EurActiv, 13 Dec 2021: EU to propose joint gas buying in response to high energy prices – document