Goal is to avoid panic buying while ensuring that EU countries' gas storage is replenished by next winter. The European Commission also told member states to refill below the 90% level set by law in 2022.
European Energy Commissioner Dan Jørgensen is urging EU countries to begin refilling gas reserves earlier than usual to avoid last-minute pressure and price spikes, a letter seen by Euronews reveals, following supply disruptions caused by delays in Qatari LNG shipments due to the United States and Israel's military attacks against Iran.
ADVERTISEMENT
ADVERTISEMENT
Jørgensen said the bloc's security of supply remains "relatively protected" due to limited reliance on imports from Qatar and on LNG cargoes that passed through the Strait of Hormuz, a vital trade route that Iran later closed, accounting for 20% of the world's oil and gas transport.
Belgium, Italy and Poland are among the EU countries more at risk of supply disruptions from Qatar, QatarEnergy's CEO Saad Sherida al-Kaabi said on March 19, noting the company is no longer able to fulfill its contractual production obligations in full.
Jørgensen's letter highlighted the bloc's reliance on global markets, as prices rose and volatility increased amid ongoing escalations following US President Donald Trump's Saturday ultimatum to Iran to open the vital trade passage within 48 hours or face consequences.
Iran responded by threatening additional energy infrastructure in the Gulf States and desalination plants, both of which are vital to the region. On Monday, Trump announced he wouldn't strike energy infrastructure "for five days".
"We are still in the early stages of the storage injection season, but it is essential that we start our preparations in time for next winter and in a coordinated manner," reads the letter dated March 20, as the Danish Commissioner expects the global disruption to affect EU gas storage injections.
Commission lower storage targets
New gas storage rules now offer greater flexibility. The Commission is allowing countries to spread refilling targets over a longer period and adjust them in response to market conditions.
"This flexibility can help reduce the gas demand at times when the supply is tense and ease the pressure on gas prices in Europe. We have also learned the pitfalls of uncoordinated action," read Jørgensen's letter.
Despite the measures to avoid panic buying, the Commission maintains that "we are much better prepared than in 2022", when Russia invaded Ukraine and the EU was confronted with a sudden supply shock that saw prices drastically spike.
EU gas storage levels need to be filled with 90% by 1 November, a preventive law put in place after Russia's invasion of Ukraine. But the EU executive is telling capitals to keep it at 80% "in case of difficult conditions" to refill underground gas storage. Some member states can refill up to 75%, while the exception can go as low as 70%.
"I would already now invite you to make use of these flexibilities and consider reducing your filling target to 80% as early as possible in the filling season to provide certainty and reassurance to market participants," reads the letter.
EU gas storage is around 30% full, below last year’s level. Germany’s inventories were about 21.6% in late February, while France is also sitting in the low-20s. This marks the lowest level for this time of year since 2022 and sits well below the 10-year average of 58%.
'Temporary, tailored, targeted' measures
Commission President Ursula Von der Leyen announced 'temporary, tailored and targeted' measures to curb rising electricity bills following the gathering of EU leaders in Brussels on March 19.
Von der Leyen vowed to tackle the four components of energy bills — energy source powering the electricity, national taxes, network fees, and carbon costs.
"We will work closely with member states that develop national schemes to further mitigate the impact of fuel cost on electricity generation," the Commission leader said.
The Commission also announced a new law on grid charges to improve the grid's operational efficiency.
On national taxes and levies, von der Leyen will propose lowering the tax rate on electricity and ensuring it is lower than that on fossil fuels — currently, electricity is taxed much higher than gas.
The bloc's carbon market, the Emissions Trading System (ETS), was hailed by the EU executive leader as a crucial climate tool that has "massively reduced gas consumption", driving a reduction in the bloc's dependency on fossil fuels and greater resilience.
But she also said the ETS review, seen as inevitable by industry experts before the summer, would include free ETS allowances beyond 2034, taking into account rising electricity costs for heavy industry.
Within the next few days, the Commission said, it will make use of the Market Stability Reserve, a financial tool in place since 2019 to help mitigate excessive price swings.
"We need to modernise it and make it more flexible," von der Leyen said.
EU countries rushing to mitigate price spikes
In the meantime, EU governments are combining tax relief, market intervention and direct subsidies to shield households and businesses from the shock.
In Italy, authorities have opted for a dual-track approach — easing the burden on consumers through tax reductions while simultaneously imposing windfall taxes on energy companies, seeking to redistribute the extraordinary profits generated during the crisis.
Austria has taken a similar route on the consumer side, cutting fuel taxes, but has gone further by introducing caps on retailer profit margins to prevent excessive markups at the pump.
Elsewhere, price controls are making a comeback.
Greece has imposed strict limits on fuel margins — and even extended those controls to essential goods like groceries — while also rolling out subsidies to soften the blow for households.
Portugal has moved to formalise its crisis response by approving a legal framework that allows the government to cap electricity prices when markets become too volatile.
Spain stands out for the breadth of its response. Faced with persistent inflationary pressures, Madrid has unveiled a sweeping emergency package that combines tax cuts, subsidies and even rent controls.
Crucially, Spain has also pursued deeper structural reforms, including earlier efforts to decouple gas prices from electricity prices — an attempt to address the root causes of volatility rather than merely its symptoms, which has effectively delivered lower energy bills in the Iberian country.
In Central Europe, Slovakia has taken a more interventionist stance focused on safeguarding domestic supply. By restricting fuel sales and allowing higher prices for foreign buyers, Bratislava is prioritising national access to energy resources amid fears of shortages.