Letter: Industry views regarding the prolongation of the joint purchasing & demand aggregation mechanism

To: Mr Matthew Baldwin, DG ENER, Deputy Director-General
Mrs Mechthild Wörsdörfer, DG ENER, Deputy Director-General
Cc: Deputy Permanent Representatives – Coreper I

Brussels, 24 October 2023

Dear Mrs Wörsdörfer, dear Mr Baldwin,

On 28 September, the Commission adopted its Report on the main findings of the review of Council Regulation 2022/2576 in view of the general situation of the gas supply to the Union (COM(2023)547final).

We understand from this report that the Commission is considering prolonging the joint purchasing & demand aggregation mechanism (Energy Platform) through the extension of the Council Regulation 2022/2576, as well contemplating to integrate this mechanism in a more structural way in the Recast Gas Regulation. Co-signatories have been active members of the Industry Advisory Group of the Energy Platform and some of them shared already their views about it in a letter sent earlier (link here).

In accordance with the above-mentioned Commission Report: “outside the context of an emergency situation, it is the normal functioning of the European gas market, driven by competition, which should determine whether and how companies may want to cooperate for the purchase of gas and within the limits of the EU competition rules”. The Energy Platform has been established on a time-limited basis, with the aim of helping ‘undertakings to obtain supplies from alternative natural gas suppliers or providers under advantageous conditions as a result of the demand aggregation and joint purchasing’ and it is not clear what benefit the Energy Platform would bring on a permanent basis.

We commend the Commission for having developed and implemented a functioning platform within a very short timeframe, however there is a lack of data justifying making it permanent. Only three tender rounds of the Energy Platform have been completed: while prospective buyers have placed demand on the Platform and suppliers made offers, matched volumes are less than 1% of volumes traded on the gas TTF platform alone and no reports exist about concluded contracts following the matching at the Energy Platform.

Therefore, we reiterate our call not to make permanent the Energy Platform through the Recast Gas Regulation. Rather, we propose to prolong the measures related to joint purchasing and demand aggregation through the Council Regulation 2022/2576 for one more year. Such an extension will allow a proper impact assessment of the functioning and the effectiveness of the Platform.

We look forward to engaging in constructive dialogue and collaboration.

Yours faithfully,

Francois-Regis Mouton, CEO International Association of Oil & Gas Producers Europe (IOGP Europe)

Mark Copley, CEO European Federation of Energy Traders (EFET)

Christian Baer, Secretary General Association of European Energy Exchanges (Europex)

Nicola Rega, Executive Director Climate Change & Energy European Chemical Industry Council (CEFIC)

Peter Claes, Chairman International Federation of Industrial Energy Consumers Europe (IFIEC Europe)

James Watson, Secretary General Eurogas

Milton Catelin, Secretary General International Gas Union (IGU)

SIGNATORIES:

The International Association of Oil & Gas Producers Europe (IOGP Europe)

The European Federation of Energy Traders (EFET)

The Association of European Energy Exchanges (Europex)

European Chemical Industry Council (CEFIC)

The International Federation of Industrial Energy Consumers Europe (IFIEC Europe)

Eurogas

The International Gas Union (IGU)

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