Article 6 amendment to the EU GAS Security of Supply regulation
Originally Published in our Industry Update Newsletter on the 31st of March 2022
Last Wednesday(23rd March) the EC published an amendment to Article 6 of the EU Gas Security of Supply Regulation concerning the Gas Supply Standard to be maintained by each Member State which is expected to enter into force shortly. The proposed amendment introduces an obligation for the 18 Member States with a facility for gas storage to achieve mandatory filling rates and thresholds (80% for winter 22/23 and 90% thereafter) and in 6 (c) for those MS without storage, for market participants to have either agreements in place with other MS for storage equivalent to 15% of annual consumption subject to physical limitations or by way of derogation from the 15% requirement burden sharing arrangements in place with other MS(s) with storage facilities. MS without storage may also apply incentives or compensation to participants for the cost of the obligation imposed by this regulation.
In order to inform the council negotiations ahead, DECC has canvassed the views of EAI and other stakeholders on how this proposed regulation can be implemented in Ireland, emphasising a quick turnaround and responses by early next week. Ireland’s compliance with the existing Article 6 N-1 supply standard has already been compromised by the UK departure from the EU. There is scope for third country inclusion in the Article 7 risk assessment and for agreements with third countries to be recognised by the EU as we understand the UK-Ireland IGA was notified before BREXIT. For the purposes of the amended regulation, gas flows to Ireland from mainland Europe via a third country, the UK, which means that any storage arrangement between Ireland and another MS would need to involve the UK. Alternatively, it may be possible to amend the voluntary arrangements under UK-Ireland IGA to reflect the EU’s new storage regime, and notify this to the EU.
Whilst it is difficult to see how Ireland can comply with this new regulation we are interested to receive any views that you wish for EAI to communicate to DECC over the coming days.