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The EU Electricity & Gas markets: third legislative package

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Security of Gas Supply

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Electricity

Security of Gas Supply

The Internal Energy Market increases the interdependence of Member States in gas supply and the EU import dependence is increasing ( it is expected to increase from 57% today to 84% by 2030). In many Member States, electricity generation is becoming heavily dependent on gas. Therefore, security of gas supply will continue to be paramount to the EU economy. The EU has effective energy relationships with traditional gas suppliers from inside the European Economic Area (EEA), notably Norway and outside, Russia and Algeria. Nevertheless, it remains important for the EU to promote diversity with regard to source, supplier, transport route and transport method. In addition, effective mechanisms need to be put into place to ensure solidarity between Member States in the event of an energy crisis. This is particularly important given that a number of Member States are highly or completely reliant on a single gas supplier.

In 2004, the EU adopted a Directive on security of natural gas supply. This Directive establishes measures to safeguard an adequate level for the security of gas supply. It establishes a common framework within which Member States shall define general, transparent and non-discriminatory security of supply policies compatible with the requirements of a competitive internal gas market; clarify the general roles and responsibilities of the different market players and implement specific non-discriminatory procedures to safeguard security of gas supply. In order to monitor the security of supply situation and provide a coordination mechanism in case of a supply crisis, the Directive establishes a Gas Coordination Group chaired by the European Commission and composed by representatives of the Member States, representatives of the industry concerned and representatives of relevant consumers. For example, the Gas Coordination Group met on 4th January 2007 to examine issues related with gas transit through Belarus (see Press release).