Brussels [Belgium], April 25: Members of the European Parliament (MEPs) adopted on Thursday a draft law that seeks to address speculation on the gas market and bring down prices, by introducing greater flexibility in rules on gas storage refilling.
The Industry, Research and Energy Committee has backed the European Commission proposal to extend the EU's 2022 gas storage scheme until 31 December 2027; it was otherwise set to end in 2025. The provision is designed to ensure security of gas supply ahead of the winter season.
This legislative proposal also provided MEPs with the opportunity to introduce a number of amendments to the existing regulation. These changes are aimed at easing tensions in the gas market partly generated by market anticipations stemming from the scheme's compulsory target of a 90% fill rate by 1 November each year.
To this end, MEPs propose reducing the filling target from 90% to 83% to help balance energy security with market-based principles and bring down gas prices. The target would have to be met at any point in time between 1 October and 1 December each year. Member states would be allowed to deviate by up to four percentage points from the filling target in the event of unfavourable market conditions, such as supply disruptions or high demand. The European Commission may further increase this deviation by up to an additional four percentage points if these market conditions persist.
Member states would however have to ensure that the cumulative effects of flexibilities and derogations do not bring down overall storage filling obligations to below 75%, MEPs agreed.
The report was adopted by 64 votes in favour and 10 against, with 12 abstentions. The text will be put to a vote during Parliament's next plenary session, from 5 to 8 May in Strasbourg.
Source: Emirates News Agency
