European Council conclusions on energy and economy, 20 October 2022

III. ENERGY AND ECONOMY

16. In view of Russia’s use of energy as a weapon, the European Union will stand together to protect its citizens and businesses and will take the necessary measures as a matter of urgency.

17. The European Council agreed that, in view of the current crisis, efforts to reduce demand, ensure security of supply, avoid rationing and lower energy prices for households and businesses across the Union should be accelerated and intensified, and that the integrity of the Single Market should be preserved.

The European Council calls on the Council and the Commission to urgently submit concrete decisions on the following additional measures, as well as on the Commission’s proposals, after assessing their effects in particular on existing contracts, including the non-allocation of long-term contracts, and taking into account the different energy mixes and national circumstances:

(a) voluntary joint purchases of gas, except for binding demand aggregation by a volume equivalent to 15 % of tank filling needs, depending on national needs, and the acceleration of negotiations with reliable partners to seek mutually beneficial partnerships by leveraging the collective trade weight of the Union and making full use of the EU Energy Platform; also open to the Western Balkans and the three Eastern Partnership partners;

(b) a new complementary reference value for early 2023 that more accurately reflects gas market conditions;

(c) a temporary dynamic price range in natural gas transactions to immediately limit episodes of excessive gas prices, taking into account the safeguards laid down in Article 23(2) of the draft Council Regulation proposed on 18 October 2022;

(d) an EU time frame for capping the price of gas in electricity generation, including a cost-benefit analysis, without changing the order of merit, while avoiding an increase in gas consumption and addressing the financial and distributional impact and its effects on flows across EU borders;

(e) improvements in the functioning of energy markets to increase market transparency, ease liquidity tensions and remove factors that amplify gas price volatility, while ensuring that financial stability is preserved;

(f) streamlining the simplification of permitting procedures in order to accelerate the deployment of renewable energy and grids, for example with emergency measures on the basis of Article 122 TFEU;

(g) energy solidarity measures in the event of disruptions in gas supplies at national, regional or Union level, in the absence of bilateral solidarity agreements;

(h) increased efforts to save energy;

(i) mobilisation of relevant instruments at EU and national level. At the same time, the immediate priority is to protect households and businesses, particularly the most vulnerable in our societies. It is also essential to preserve the Union’s global competitiveness. All relevant instruments at EU and national level should be mobilised to increase the resilience of our economies, while preserving Europe’s global competitiveness and maintaining the level playing field and integrity of the Single Market. The European Council is determined to closely coordinate strategic responses. It stresses the importance of close coordination and common solutions at European level, where appropriate, and is committed to achieving our strategic objectives with unity. The Council will continue to closely monitor economic developments and is determined to continue to strengthen our coordination, in order to provide a determined and agile strategic response.

18. The European Council reiterates the need to increase investments in energy efficiency, future-proof energy infrastructure, including interconnections and storage, and innovative renewable energy technologies.

19. The European Council invites the Commission to accelerate work on the structural reform of the electricity market, including by preparing an impact assessment, and calls for further progress towards a full Energy Union contributing to the twin objectives of Europe’s energy sovereignty and climate neutrality.

20. The European Council remains seized of this matter.

Source: European Council