Ireland has option of exemption from 15% EU gas cuts

Meanwhile, prices of European wholesale gas rose a second day after flows of Russian gas through Nord Stream 1 were reduced. File photo: Stefan Sauer/dpa

The EU's agreement to cut its use of gas by 15% through the winter won’t apply to all member states equally, with several securing exemptions to help forge a unified front.

The deal comes as Russia again cuts the flow of gas to Europe on the key Nord Stream 1 pipeline, complicating efforts to store enough fuel to get through winter. 

But securing approval from all members meant diluting the deal with opt-outs to assuage a handful that were reluctant to sacrifice their own economies to support Germany’s, the biggest in Europe. 

Jozef Sikela, the Czech minister of industry and trade, said there were other concessions and it won't apply if Russia disconnects gas to the EU in the case of Ireland, Malta, and Cyprus, which aren’t directly connected to the EU’s gas system. 

“Our initial calculations indicate that even if all exemptions are used in full, we would achieve a demand reduction that will help us safely through an average winter,” said Kadri Simson, the EU Energy Commissioner.

A group that includes Greece, Spain, Italy and Portugal secured an exemption allowing their power plants to be shielded from reduction targets during an emergency, according to the Greek Energy Ministry. 

Meanwhile, prices of European wholesale gas rose a second day after flows of Russian gas through Nord Stream 1 were reduced.    

Prices for gas to be delivered from this summer right through the winter months rose by as much as 12%, according to futures markets. 

Bloomberg and Irish Examiner