The European Commission on Tuesday urged Member States to reduce energy demand—particularly for petroleum-derived products—and warned that the impact of the conflict in the Middle East on energy markets will be prolonged, with no return to normality foreseen in the short term, even though no immediate supply issues have been recorded within the EU thus far.
“Even if peace were to arrive tomorrow, we would not return to normality in the foreseeable future,” warned Energy Commissioner Dan Jorgensen during a press conference following an informal meeting of energy ministers. He underscored that, even in such a scenario, “there would still be consequences,” as energy infrastructure in the region “has been damaged by the war and continues to deteriorate.”
Consequently, he cautioned that “we must not delude ourselves into thinking that the consequences of this crisis will be short-lived,” while simultaneously emphasizing the need to act “with unity” and “in close coordination” to avoid “fragmented national responses” that could further distort the market.
In this context, the Commissioner indicated that Brussels would present a package of initiatives to protect families and businesses “quite soon,” although he refrained from specifying an exact timeline. “We are monitoring the situation very closely—a situation that will remain highly dynamic—and, therefore, we will be flexible and prepared to propose measures whenever necessary,” he added.
As he detailed, since the onset of the conflict, gas prices have risen by approximately 70% and oil prices by 60%, thereby increasing the EU’s energy bill by some 14 billion euros in the span of just one month. Although ministers agree that security of supply remains “relatively protected”—thanks to the diversification of suppliers and reduced reliance on the Gulf—the Commissioner has warned that “tensions persist in certain product markets,” particularly regarding diesel and aviation fuel, as well as “growing constraints in global gas markets” that are impacting electricity prices.
In light of this scenario, Jorgensen emphasized that it is “extremely important” to act with unity and avoid uncoordinated responses, while arguing that any measures adopted by Member States must be “targeted” and “temporary,” and must not exacerbate supply and demand conditions.
REMOTE WORK AND SPEED REDUCTIONS AS ENERGY-SAVING MEASURES
Furthermore, he encouraged governments to “do everything they can” to reduce energy demand—particularly for petroleum-derived products—and suggested they draw inspiration from the International Energy Agency’s ten-point plan. This plan includes measures such as promoting remote work, lowering highway speed limits, and boosting public transportation.
Among other options, the plan also contemplates alternating restrictions on private car usage in major cities, promoting carpooling, and adopting efficient driving practices for both commercial vehicles and freight transport.
“It is clear that this is not a one-size-fits-all package—one in which every Member State is expected to implement every single one of these demand-reduction tools—but it does constitute a very useful instrument, and we strongly recommend that each country assess which options are available to them,” he added.
In addition, he noted that measures already exist which European countries can implement—such as the recent energy package for citizens—featuring actions designed to lower household energy costs, as well as fiscal recommendations, including tax reductions—particularly on electricity—something which, according to the Commissioner, would be “very timely at this moment.” In parallel, he emphasized that the Commission is already working on coordinating the filling of gas storage facilities and strengthening oil supply security, in an effort to anticipate potential additional market tensions and ensure the EU’s preparedness for the coming months.
“Better to be prepared than to regret it later,” warned the Danish politician, who also indicated that Brussels is preparing a broader toolkit that will include—among other elements—measures to facilitate the use of instruments such as contracts for difference and power purchase agreements, with the aim of decoupling gas prices from electricity prices and reducing the impact on consumers.
Furthermore, the Commissioner noted that this package will also include the simplification and expansion of state aid possibilities, enabling Member States to support both the most vulnerable households and industries facing extraordinary pressure due to rising energy costs.
Nevertheless, Jørgensen emphasized that, although the EU is in a better position than during the energy crisis of 2022, the current context may be more complex as it affects a wider range of energy products—a situation which, in his view, once again highlights the Union’s “structural vulnerability” to external shocks stemming from its reliance on imported fossil fuels.
