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newsEU leaders reach a deal on energy

The European Council discussed the energy crisis and agreed on the need to accelerate and intensify efforts to reduce energy demand, avoid rationing, secure supply and lower prices. Leaders stressed that the integrity of the single market had to be preserved.

In the face of Russia’s weaponisation of energy, the European Union will remain united to protect its citizens and businesses and take the necessary measures as a matter of urgency

                                                               European Council conclusions, 20 October 2022

EU leaders called on the Council and the Commission to urgently submit concrete decisions on additional measures and on the Commission's proposals. They also insisted on the need to assess their impact on existing contracts, including the fact that long-term contracts should not be affected, and to take into account different energy mixes and national circumstances. The additional measures include: 

  • voluntary joint purchases of gas, except for binding demand aggregation for 15% of storage filling needs, according to national needs, exploiting the Union’s collective market weight and making full use of the EU Energy Platform
  • a new complementary price benchmark by early 2023 that more accurately reflects conditions on the gas market
  • temporary dynamic price corridor on natural gas transactions to immediately limit episodes of excessive gas prices, designed in a way so as to not jeopardise security of supply and increase gas consumption, among others
  • a temporary EU framework to cap the price of gas in electricity generation, including a cost-and-benefit analysis
  • improvements to the functioning of energy markets to increase market transparency, alleviate liquidity stress, eliminate factors that amplify the volatility of gas prices and preserve financial stability
  • fast-tracking of the simplification of permitting procedures to accelerate the rollout of renewables and related grids
  • energy solidarity measures in case of gas supply disruptions at national, regional or the EU level, in the absence of bilateral solidarity agreements
  • increased efforts to save energy
  • mobilise relevant tools at national and EU levels to enhance the resilience of our economies and preserve Europe's global competitiveness

The European Council is committed to closely coordinating policy responses and will continue to closely monitor economic developments to deliver "a determined and agile policy response".

The European Council reiterated the need to step up investments in energy efficiency, future-proof energy infrastructure and innovative renewable technologies.

Leaders invited the Commission to speed up work on the structural reform of the electricity market, including an impact assessment and called for further progress towards a full Energy Union serving the dual objective of European energy sovereignty and climate neutrality.

Copyright European Union