EU urges member states to brace for gas price rise ahead of tense winter

The European Union is heading into winter with gas reserves noticeably lower than usual, according to a statement from EU Energy Commissioner Dan Jørgensen. He called on member states to begin conserving energy resources in good time, while stressing that there is currently no immediate threat to gas supplies for Europe.

Reserves lower than last year

According to available data, EU gas storage facilities are currently filled to about 70% capacity, which is 12 percentage points lower than at the same time last year. The situation is further complicated by instability in the Middle East and growing competition with Asian markets for liquefied natural gas shipments.

Possible impact on household costs

The European benchmark gas price currently stands at around €72 per megawatt-hour. Industry analysts, however, suggest that during the coldest winter months this could rise above €100 per megawatt-hour, which could ultimately affect household bills.

Calls for savings, but no rush

Jørgensen has urged member states to consider measures to reduce both gas and electricity consumption, similar to steps taken during the 2022 energy crisis, including cutting electricity use during peak hours. At the same time, the European Commission is not urging countries to rush to fill storage to maximum capacity. Under current market conditions, a fill level of around 80% is considered sufficient, since hurried gas purchasing could itself drive prices even higher.