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A gas station in Germany on the 25th local time. / Yonhap News

The European Union's energy chief has urged member states to consider additional measures to curb demand for gas and electricity as energy prices spike in the wake of the war in Iran. The move is aimed at preparing for the possibility of prolonged energy price instability ahead of rising winter heating demand.

According to Reuters on the 25th local time, European Commissioner for Energy Dan Jørgensen called for stepped-up winter preparedness in a letter sent to member states' energy ministers, stating that "we are facing a price crisis linking to a supply crisis."

Commissioner Jørgensen assessed that the bloc's capacity to respond has improved compared to the winter of 2021, when Russia slashed gas supplies to Europe, thanks to expanded LNG import capacity, a higher share of renewable energy, and reduced gas demand. However, he called on countries to sustain injections into gas storage facilities for as long as necessary while introducing or maintaining measures to curb gas and electricity consumption.

As specific measures, he suggested limiting temperatures in public buildings, banning outdoor heating, and switching off unnecessary public lighting. The European Commission nonetheless views that gas supply itself has faced no immediate disruption and that supply conditions remain stable.

The EU relies on imports for approximately 80% of its gas demand, leaving it vulnerable to swings in global energy prices. In particular, supply anxieties stemming from the Middle East have persisted amid the effective closure of the Strait of Hormuz—through which around 20% of the world's oil and LNG passes—driving European energy prices sharply higher.

European natural gas prices climbed above 80 euros per megawatt-hour (MWh) this month, reaching their highest levels in three years. Ahead of winter, some countries are struggling to fill storage facilities. However, the European Commission maintains that actual gas supply shortages have not materialized at this stage and plans to continuously monitor market conditions.

                                                                                                             Kim Hyun-min