Czech Business Today

On 15^th December 2021, the European Commission presented a revision of the third energy package for gas, which mainly aims at the Directive on common rules for the internal market in natural gas and the 2009 Regulation on conditions for access to the gas transmission system. The revision should focus, among other things, on the possibilities for expanding gas storage in the EU and security of supply. The gas package was also the main topic of an online debate co-organized by CEBRE on 15^th December.

The package that the European Commission adopted is a set of legislative proposals to decarbonise the European gas market to promote the deployment of renewable and low-carbon gases, including hydrogen, and ensure energy security.

As mentioned by Adéla Tesařová from the European Commission, the proposal also addresses consumer protection in the energy sector. The Commission has built on the EU methane strategy and its international commitments with proposals to reduce methane emissions in the energy sector in Europe and the global supply chain. The proposal is one of a series of initiatives to adapt to the new 55% greenhouse gas reduction target by 2030 and to pave the way for a climate neutral Europe by 2050.

According to Jan Zaplatílek from the Ministry of Industry and Trade of the Czech Republic, the timing of the package is unfortunate, as the EU is tapering off a dramatic rise in energy prices linked to the rise in gas prices. This is negatively impacting households as well as businesses. The dramatic increase in prices is explained by the fact that prices have been falling in recent years and have been at historic lows, especially in 2020, when demand for gas fell significantly due to the pandemic. Following a number of circumstances, gas prices began to rise slowly in July this year and the price spike peaked from September.

The package must not be seen as an immediate response to price rises, but as a medium- and long-term strategy for the gas sector on its journey towards decarbonisation, said Lenka Kovačovská from the Czech Gas Association. The strategy opens up space for “other colours” of hydrogen, which is very important for the Czech Republic, and the Czech hydrogen strategy foresees this. The Czech Gas Association welcomes the establishment of a clear framework that defines the conditions for reducing the carbon footprint of the gas sector.

As all the speakers mentioned, the topic is very important for the Czech Republic also from the point of view that the main political discussions could happen during the Czech Presidency to the Council of the EU which will take place in the second half of 2022.