Industry calls on government to oppose mandatory gas cuts

European solidarity, even in times of crisis, has a limit.

Thomas Osborne
Thomas Osborne
19 July 2022 Tuesday 16:54
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Industry calls on government to oppose mandatory gas cuts

European solidarity, even in times of crisis, has a limit. The main Spanish industry associations yesterday asked the Government to directly oppose the European Commission's intention to force Member States to reduce their gas consumption this winter. A mechanism that could be approved today with the aim of minimizing the possible impact of the closure of the Russian gas tap.

The Alliance for the Competitiveness of Spanish Industry, made up of Anfac (automotive), AOP (refining), Aspapel (paper), Feique (chemicals and pharmaceuticals), FIAB (food and beverages), Oficemen (cement) and Unesid (steel) , formalized its position yesterday in a letter addressed to the Third Vice President of the Government and Minister for the Ecological Transition, Teresa Ribera.

“It makes no sense to impose reductions in gas consumption in all countries equally, regardless of their particular situation and whether or not the unconsumed gas may or may not be exported and consumed by other countries in the Union. Forcing industrial shutdowns in countries where it is not necessary will aggravate the shortage of essential products throughout Europe and increase the economic impact of the crisis, putting at risk the functioning of the entire value chain of the European economy”, the companies argue. in the statement.

Spain – unlike Germany, Austria, and the rest of the countries in the north and east of the EU – does not depend on Russian gas since it imports it mainly from the United States and Algeria. For this reason, the great Spanish industry wants to get out of this obligation that the Commission is preparing. Programmed together with the Save gas for a Safe Winter plan, it contemplates pre-established gas cut percentages that Brussels could apply unilaterally or at the request of two member states.

In the statement, the Alliance also criticizes the fact that a measure of this magnitude is approved directly by the European Commission. In his opinion, this decision should be subject to full scrutiny by the community institutions, "not being able to hide the debate from the European Parliament and Council."

In addition, large industry considers that the authorities must take into account that Spanish gas consumers, both domestic and industrial, have been financing a large investment in gas infrastructure for years, precisely to reduce the risk of dependence on a single supplying country. . "It is incoherent that it can be decided by the European Commission itself that we stop our factories and a drop in activity and employment is generated gratuitously," he laments.

The measure is part of a plan that the Commission is preparing to deal with possible cuts in Russian gas this winter. According to a draft that emerged last week, different mechanisms would be on the table. The most striking is to limit the maximum temperature to 19ºC in winter in public buildings, offices, commercial buildings and terraces and not to lower the air conditioning below 25ºC in the summer months.

Likewise, Brussels is studying establishing incentives, which would be assigned through auctions, for those companies that reduce their gas consumption. Priority will be given to “key and critical sectors and value chains which, if disrupted, could have a negative impact on food, health and safety at European and global level”.