MEPs Support Flexible Gas Storage Refill Rules To Lower Prices And Ensure Supply Security

On Thursday, Members of the European Parliament (MEPs) approved a draft law aimed at reducing gas market speculation and lowering prices by introducing more flexible gas storage refilling rules. The Industry, Research and Energy Committee supported the European Commission's proposal to extend the EU’s 2022 gas storage scheme until 31 December 2027, which was initially set to end in 2025.

This legislative proposal also allowed MEPs to suggest amendments to the current regulation. These changes aim to ease market tensions partly caused by the scheme’s mandatory target of a 90% fill rate by 1 November each year. To address this, MEPs propose lowering the filling target from 90% to 83% to balance energy security with market principles and reduce gas prices.

The proposed target must be achieved anytime between 1 October and 1 December annually. Member states can deviate by up to four percentage points from this target if faced with adverse market conditions like supply disruptions or high demand. If these conditions persist, the European Commission may allow an additional deviation of up to four percentage points.

Despite these flexibilities, member states must ensure that overall storage filling obligations do not fall below 75%. This agreement aims to maintain energy security while allowing some leeway for countries facing challenging market situations.

The report received approval with 64 votes in favour, 10 against, and 12 abstentions. The text is scheduled for a vote during Parliament’s next plenary session in Strasbourg from 5 to 8 May. This step is crucial for formalising the proposed changes into law.

The extension of the gas storage scheme is designed to secure gas supplies ahead of winter seasons. By adjusting targets and allowing deviations under specific conditions, MEPs aim to stabilise the gas market while ensuring sufficient reserves are maintained across Europe.

With inputs from WAM