EU move to cut gas usage likely to impact householders - Byrne

The European Union’s proposal that all states cut natural gas consumption by 15 per cent over the next eight months could see householders face increased energy prices, Minister of State for European Affairs Thomas Byrne warned on Thursday.

The island of Ireland is not connected to pipelines directly connected to the Russian gas supply system, and gas used in the Republic comes from a range of sources, including domestic, Norway and Britain.

Mr Byrne said while householders are considered protected customers under the EU proposal, there was likely to be an indirect impact in the form of increased energy prices.

Mr Byrne told RTÉ radio’s Today show Ireland was not going to claim exceptionalism – by virtue of not being connected directly to Russian gas via the general European gas grid.

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“We have different circumstances that will somehow have to be reflected in this proposed regulation. Our gas comes from our own sources which are unfortunately declining and from Norway through Britain and British gas supplies as well, so we’re not interconnected to the European market.”

“Unfortunately all of this does indirectly affect you because it attracts price. It’s possible of course that a reduction in demand will help reduce the price as well”.

The energy security framework launched in April will now have to be updated if this proposed regulation goes ahead, he added.

“That’s the same in every country. There’s a lot of measures being taken in relation to renewable (energy), we want to get those renewable facilities up and running as quickly as possible by reducing the permitting time. There’s huge work going on at European level”.

He said the European Union was trying to diversify its supply of gas and type of energy used and try to reduce demand.

The goal is embedded in regulation accompanying demand-reduction guidelines for governments amid growing concern that Russia will cut gas exports to the region after being hit with sanctions following its invasion of Ukraine.

The measure put forward by the European Commission includes a mandatory trigger if the situation worsens and voluntary curbs are insufficient.

“The European Union faces the risk of further gas-supply cuts from Russia due to the Kremlin’s weaponisation of gas exports, with almost half of our member states already affected by reduced deliveries, the commission said on Wednesday in a statement. “Taking action now can reduce both the risk and the costs for Europe in case of further or full disruption.”

The EU’s biggest challenge this winter is to ensure sufficient gas supplies to fuel furnaces and power generators. Russian president Vladimir Putin has signalled that Europe will start getting gas again through the key Nord Stream pipeline, but warned that unless a spat over sanctioned parts is resolved, flows will be tightly curbed.

Under its “Save gas for a safe winter” plan, the commission recommended steps that include reducing heating and cooling, switching to other fuels and market-based measures. Curtailments of Russian shipments have already affected 12 member states, and prompted Germany to raise its gas-risk alert to the second-highest level last month.

The commission is working under the assumption that Russia may not resume full deliveries via Nord Stream gas pipeline, or that there may be future disruptions to supply.

The measure will need approval from member states, which the EU’s executive arm may seek as soon as next week during an emergency meeting of energy ministers.