Energy prices and security of supply

The ministers reached a political agreement on extending the period of application of three emergency Council regulations adopted under article 122 of the Treaty on the Functioning of the EU, designed for emergency situations.

The emergency measures were adopted last year due to Russia’s war of aggression against Ukraine, in order to enhance solidarity between member states, accelerate the deployment of renewable energy and protect EU citizens from excessively high energy prices.

The extension of the three emergency measures is necessary to address a still-fragile situation in the EU following Russia’s invasion of Ukraine. This will allow us to ensure the stabilisation of the energy markets, alleviate the effect of the crisis and protect EU citizens from excessive high energy prices.

Teresa Ribera, Spanish Deputy Prime Minister and Minister for the Ecological Transition and the Demographic Challenge

Enhancing solidarity

Regulation (EU) 2022/2576 enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders includes temporary emergency measures designed to bring down high energy prices and improve gas supply security.

Ministers agreed to delete article 10 on mandatory participation in demand aggregation.

The emergency regulation applies from 30 December 2022 for a period of one year. EU energy ministers agreed to extend the regulation for one more year, until 31 December 2024.

Accelerating the deployment of renewable energy

Regulation (EU) 2022/2577 laying down a framework to accelerate the deployment of renewable energy aims to tackle the energy crisis, reduce the EU’s dependence on Russian fossil fuels and further advance the EU’s climate objectives by accelerating the permit-granting process for and the deployment of renewable energy projects.

The regulation applies from 30 December 2022 for a period of 18 months.

Ministers agreed to extend the period of application of certain amended provisions of the regulation until 30 June 2025. Unlike the other two emergency regulations, amendments go beyond the mere extension of the period of application of the regulation.

Regulation (EU) 2022/2578 establishing a market correction mechanism to protect EU citizens and the economy against excessively high prices establishes a system of temporary measures to prevent spikes of excessively high gas prices in the EU that do not reflect prices on the world market.

Ministers agreed to prolong the period of application of the regulation, as proposed by the Commission, and they maintained its substance.

The regulation applies from 1 February 2023 for a period of one year and it will be extended for one more year, until 31 January 2025.

Next steps

The Council will now aim to formally adopt the regulations by written procedure. They will then be published in the EU’s Official Journal and enter into force immediately after the expiration of the current regulations.

Background

The Commission presented proposals for the three Council regulations in November 2022 under article 122 of the Treaty on the Functioning of the EU, designed for emergency situations.

The Council adopted a package of emergency measures based on article 122 TFEU in December 2022 as a result of the energy crisis provoked by Russia’s war of aggression against Ukraine.

The solidarity regulation will expire on 31 December 2023, while the market correction mechanism regulation and the permitting regulation will expire on 31 January 2024 and 30 June 2024 respectively.

On 28 November 2023, the Commission adopted three proposals extending the period of application of these emergency measures.