EU Urges Temporary Demand Cuts as Gas Prices Surge

Overview

• On Friday, Sept. 25, EU Energy Commissioner Dan Jørgensen sent a letter to member-state ministers asking them to adopt temporary demand-reduction measures to contain sharply higher gas and electricity prices.
• The Commission says there is no immediate threat to gas supply but warns that low storage and volatile markets could raise winter risks if policy action is not taken.
• EU gas storage stands at roughly 68–70% of capacity, well below the 90% pre-winter target and trailing last year’s levels, which is pressuring prices and refill plans.
• Officials recommended specific conservation steps such as lowering temperatures in public buildings, banning outdoor heating, and switching off non-essential public lighting, and they advised any price controls be well-targeted and temporary to avoid boosting demand.
• Brussels pointed to Iran-related disruptions to shipping and damage to export facilities that have removed LNG volumes from global markets, leaving Europe’s heavy import dependence and chokepoints like the Strait of Hormuz as key vulnerabilities this winter.