In a letter reviewed by Bloomberg News on Saturday, EU Energy Commission Dan Jorgensen cautioned the bloc's energy ministers that Europe's reliance on imported fossil fuels leaves it exposed when markets turn volatile. "We are facing a price crisis linking to a supply crisis," he wrote, urging national governments to move quickly for the heating season and to keep adding gas to storage ahead of winter. The European Commission did not provide an immediate comment.
Gas in Europe now trades at more than twice its level from late February, after a US-led war on Iran began, and it climbed to the highest point since late 2022 earlier this month. The surge has rapidly become a leading item on the EU's political agenda, as firms around the bloc cite rising energy costs for undermining Europe's competitiveness and voters press governments to blunt soaring bills.
Gas stockpiling has also been tougher than usual this year. The Middle East conflict has lifted near-term prices above winter contracts, which makes summer injections into storage less economical. Storage sites now hold a little more than 70% of capacity, versus a usual 86% for this point in the year.
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EU rules permit a tolerance of 10 percentage points from the 90% storage target before heating season, with a further five percentage points available if market conditions are unfavorable. Jorgensen said that "making use of the flexibility provided by the Gas Storage Regulation and reducing the filling target to 80% can help alleviate immediate pressure on prices and refilling costs." He added, "However, and where relevant, I invite you to consider taking or continuing to take measures that can sustain injections or reduce gas and electricity demand for as long as necessary."
For household budgets, the takeaway is simple: if policymakers lean on demand cuts and use storage levers to calm prices, winter bills may be less jumpy.
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