Role of gas storage for securing gas supplies ahead of the winter season
The European Parliament adopted by 542 votes to 109, with 30 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2017/1938 as regards the role of gas storage for securing gas supplies ahead of the winter season.
The European Parliament adopted its position at first reading by amending the Commission's proposal as follows:
Purpose of the regulation
The proposed regulation aims to extend by two years (until the end of 2027) the relevant gas storage-filling provisions that provide predictability and transparency as to the utilisation of gas storage facilities across the Union, while at the same time introducing some flexibility into those provisions. The amendment aims to reduce the Union's exposure to price volatility linked to geopolitical instability following Russia's war of aggression against Ukraine.
Filling objective
The amended text maintains the existing binding filling target of 90% gas storage, but provides some flexibility to achieve it at any time between 1 October and 1 December of each year, instead of the current deadline of 1 November.
In the case of difficult conditions, such as indications of trading activities hindering cost-effective storage filling, low seasonal price spread, high price environment, storage levels below the trajectory at Member State level or unforeseen technical circumstances that would make storage injection difficult and costly, limiting the ability to ensure that the gas storages are filled in accordance with the Regulation, Member States should have the possibility to deviate from the filling target by up to ten percentage points.
Furthermore, in the case of persistent unfavourable market conditions, such as indications of possible market manipulation, or of trading activities hindering cost-effective storage-filling, that significantly limit the ability to ensure that the gas storages are filled in accordance with the Regulation, the Commission should be empowered to further increase the level of deviation allowed by means of a delegated act. That increase should not exceed an additional five percentage points.
A Member State making use of any of the flexibilities provided for in the Regulation will consult the Commission and justify its decision immediately. The Commission will inform the Gas Coordination Group and any directly affected Member State without delay of the cumulative effects of all flexibilities used.
Filling trajectory
For 2023 and the following years, each Member State with underground gas storage facilities will submit to the Commission, by 15 September of the previous year, a filling trajectory with intermediary targets for February, May, July and September, including technical information, for the underground gas storage facilities on its territory and directly interconnected to its market area in an aggregated form. The filling trajectory and the intermediate targets will be based on the average filling rate during the preceding five years.
Each Member State will take all necessary measures in accordance with Article 6b to meet the filling target. Where, in any given year, a Member State does not meet its filling target, it will take effective measures to ensure the security of supply while taking into consideration the price impact on the gas market. Where a Member State fails to meet the filling target, that Member State will inform the Commission and the GCG without delay, providing reasons for the failure to meet the filling target and the measures taken.
The competent authority of each Member State may take all necessary measures to meet the filling trajectory, including the introduction of binding intermediate targets at national level. It will continuously monitor alignment with the filling trajectory and will inform the Gas Coordination Group regularly of the alignment with the filling trajectory.
In the event of a substantial and sustained deviation by a Member State from the filling trajectory, the Commission will issue a recommendation to that Member State or to the other Member States concerned, regarding measures to be taken to remedy that deviation or to minimise the impact on security of supply, while taking into consideration, inter alia, possible difficult conditions or unfavourable market conditions as well as specificities of Member States.
Member States without underground gas storage facilities
A Member State without underground gas storage facilities will ensure that market participants within that Member State have in place arrangements with underground storage system operators or other market participants in Member States with underground gas storage facilities. Those arrangements shall provide for the use, by 1 December, of storage volumes corresponding to at least 15 % of the average annual gas consumption over the preceding five years of the Member State without underground gas storage facilities.
Installation managers
Storage system operators should report the filling level to the competent authority of each Member State where the underground gas storage facilities are located. The competent authority will monitor the filling levels of the underground gas storage facilities located in their territory at the end of each month and report the results to the Commission monthly without delay. The competent authority will have to include information on the share of gas from Russia stored in that Member State as part of the storage facilities' operating capacity, where such information is available.
Sanctions
Member States will take the necessary measures to meet the filling target and to enforce upon market participants the storage obligations which are required to meet the filling target, including by imposing sufficiently deterrent sanctions and fines on those market participants.