EU fails to reach agreement on energy measures; 50 million Europeans with underheated homes

Update

EU fails to reach agreement on energy measures; gas prices and reserves exert pressure

The problem of thermal electrification and high energy costs remains a priority, with approximately 50 million people in the European Union unable to heat their homes at an adequate level, a situation that risks worsening with the approach of winter. Rising prices in international markets, tensions in the Middle East, and Russia's war against Ukraine exert additional pressure on the European energy system. Energy ministers from member states discussed measures to reduce bills and protect consumers in Luxembourg but failed to reach an agreement on additional measures, according to Euronews. The situation is of direct relevance to Romania, which, being part of the European energy market, is exposed to fluctuations in gas and electricity prices. ^[2]

Wholesale natural gas prices have recently surpassed the threshold of 97 euros per megawatt-hour, representing the highest level recorded since 2022. The European energy market is deeply influenced by geopolitical developments, with the conflict in the Middle East and Russia's war against Ukraine amplifying supply instability. ^[2]

Gas deposits in the European Union were filled to approximately 75% at the current moment, compared to 83% during the same period last year. ^[2]

Thirteen states, including Germany and Italy, requested the withdrawal of the European Commission's proposal regarding the increase in gas taxes, considering that this initiative would negatively affect low-income households. Discussions at the ministers' meeting on October 29 did not lead to a compromise, with the Council postponing the adoption of additional measures until December 2026. ^[2]

There are significant differences between member states regarding gas reserves. On October 26, 2026, deposits in Germany were filled at approximately 62%, and those in the Netherlands at about 65%. Italy had reserves exceeding 90%. ^[2]

EU regulations provide for reaching a deposit filling degree of 90% in the period October 1 - December 1, with derogations possible under difficult market conditions. According to the European Commission, EU countries spent 17.9 billion euros on population protection interventions against energy price hikes alone this year. If support continues until the end of the year, the total sum could reach 38.6 billion euros. Matteo Prina from the Eurac Research Institute for Renewable Energy explained that the fiscal sustainability of these emergency measures depends on the scale and duration of the interventions. Support is easier to maintain when it is temporary and revised as market conditions change. ^[2]

Update

Stockpiles at minimum and high prices: EU will act in December 2026

Amid the vertiginous rise in gas prices and the EU's gas reserve at only 75% of capacity (down from 83% last year), European Commissioner for Energy, Dan Jorgensen, warned that nearly 50 million Europeans cannot heat their homes adequately. Gas prices reached a level of almost 100 euros per megawatt-hour, determined by conflicts in the Middle East and Russia's war against Ukraine. At the October 29 energy ministers' meeting in Luxembourg, no agreement was reached on consumer protection measures. Although the EU does not anticipate a physical shortage of oil or gas, the main risk is an economic shock that could make basic utilities inaccessible. Geopolitical tensions, including the war in Ukraine and instability in the Middle East, have reduced the EU's gas reserves to 75% of capacity, down from 83% recorded last year. Between 2021 and 2023, 62% of companies reported operational blockages due to volatile energy costs, while 80% faced supply chain constraints or restructuring. 13 member states, including Germany and Italy, requested the withdrawal of the European Commission's proposal to increase gas taxes, fearing it would negatively affect citizens with low incomes. With the ban on Russian gas valid until January 2027 and some countries, such as Italy, pursuing independent price caps, the European Council postponed adopting final decisions, exploring a compromise for December 2026. ^[3]

European energy markets are tense, wholesale gas prices exceeding 97 EUR per megawatt-hour, the highest level recorded since 2022. The EU energy dependency report has changed radically: if Russia previously supplied 45% of gas imports, its share dropped to 12% by 2025, after the invasion of Ukraine, forcing European states to turn to Norway, the USA, and Algeria. The expiration of the transit agreement between Russia and Ukraine (December 31, 2024) forced the EU to replace cheap Russian gas with more expensive sources, exposing countries to global competition and geopolitical tensions. Europe competes with Asian importers for global gas resources, so any increase in demand or logistical disruption can quickly lead to higher prices in the local market. The war in the Middle East affects the energy flow through the Strait of Hormuz, which transports nearly 20% of global LNG. Recent maritime disruptions have reduced LNG exports from Qatar and the United Arab Emirates. According to the International Energy Agency, LNG exports from the Persian Gulf region decreased by 35 billion cubic meters in the period March-June 2026 compared to the previous year. On October 26, 2026, storage facilities in the EU were filled at 75%. There are major disparities: Germany at 62%, the Netherlands at 65%, in contrast to Italy, where deposits exceeded 90%. States with low gas reserves, such as Germany and the Netherlands, will have to buy additional gas in winter, when demand for heating and prices are at their peak. The decrease in dependence on Russian gas from 45% to 12% has increased total costs for Europe, which now depends on alternately more expensive and geopolitically unstable sources. The constraint on the European liquefied gas market from the Persian Gulf (reduced by ~35 billion cubic meters in the first half of 2026) amplifies the price shock in the context of the war in the Middle East. ^[3]

The meeting in Luxembourg focused on reducing bills through modifications to electricity network tariffs and preparation for potential gas supply failures. The European Commission considers the gas system prepared for winter, although an unexpected cold wave could put additional pressure on networks. The Commission proposed, on July 17, 2026, changes to the way electricity networks are paid to reduce bills. Network tariffs cover construction and maintenance costs, representing approximately 25% of the average electricity bill. This proposal would increase cost transparency and encourage efficient use of infrastructure through smart meters and digital management, avoiding costly investments in new lines, and stimulate consumption outside peak hours. Ministers emphasized the need for source diversification, reduced dependence on fossils, and strengthened solidarity, with emphasis on cooperation with Ukraine and the Republic of Moldova. EU rules prevent reaching a storage capacity of 90% for gas in the period October 1 – December 1, but allow derogations. ^[3]

Noah Gordon from the European Council on Foreign Relations explained that the lack of large-scale storage capacities (pumped hydro, batteries) forces Europe to rely on gas to cover peak consumption. The development of cross-border interconnected networks would allow the export of cheap green energy to countries that do not have their own resources, thus reducing overall dependence on gas. The breakdown of internal and external interconnections hinders the optimal flow of clean energy; countries with cheap energy often import local polluting and expensive energy. Energy mixes differ between member states: in Spain, gas influences electricity prices only sporadically, whereas in Italy gas dominates prices, and Germany is in the middle. Italy is particularly exposed to the gas price that dictates electricity, while Spain, thanks to renewable energies, is less affected by gas. There is no universal solution: solutions depend on the local energy mix (Renewable heavy like Spain vs Gas heavy like Italy). ^[3]

The EU has already spent 17.9 billion euros on temporary support measures (subsidies, vouchers, caps), and the annual total could reach 38.6 billion euros if they are extended. Matteo Prina from Eurac Research warned that temporary emergency measures are essential for vulnerable classes but can put budgetary pressure on states. Prina supports a combination of short-term aid and long-term investments (renewables, storage). He believes that artificially maintaining low prices could weaken investments in clean energy, undermining long-term climate objectives. The Research Service of the European Parliament warns that immediate support can slow down the green transition, leaving the EU vulnerable to future energy shocks. Matteo Prina proposed that the EU coordinate demand and supply, simultaneously accelerating renewable energy, networks, storage, electrification, and energy efficiency. Prina concluded that electricity prices and retail market mechanisms must allow households to benefit from efficient investments. The EU acts through supply-demand mechanisms as gas prices rise. Immediate measures include vouchers, capping, or subsidies, providing immediate protection but having a negative long-term impact. EU spending on temporary measures reaches 17.9 billion euros this year, potentially reaching 38.6 billion euros if extended until December 2026. Experts such as Matteo Prina emphasize the need for a balanced approach: temporary measures to protect the population and structural investments to decouple prices. ^[3]

Update

EU fails in negotiating energy measures: high prices and weak reserves leave 50 million Europeans with cool homes

The European Union faces an accumulated energy crisis ahead of winter: gas deposits are emptier than usual, prices are high, and approximately 50 million Europeans cannot heat their homes decently. At the meeting in Luxembourg (October 29), energy ministers negotiated protection measures, but interstate divergences prevented concluding an agreement. ^[4]

In Luxembourg, ministers analyzed voluntary consumption reduction and the idea of lowering the filling target for deposits from 90% to 80%, to avoid hurriedly buying gas at very high prices. Measures to accelerate LNG purchases, consolidated purchases, and the installation of smart meters in half of all households by 2030 were also evaluated. ^[4]

The European Commission's proposal to tax gas to accelerate the green transition sparked opposition. Thirteen countries, including Germany and Italy, requested the withdrawal of the measure, fearing its impact on low-income families. Against the background of the ban on Russian LNG imports (until January 2027), Italy is simultaneously exploring the option of national price caps. ^[4]

European dependence on Russian gas has reversed radically: a few years ago, Russia supplied 45% of EU imports, a share that dropped to 12% in 2025. European states compensated through sources from Norway, the USA, and Algeria, and the expiration of the transit agreement through Ukraine (December 2024) eliminated a vital channel that previously transported 15 billion cubic meters annually. ^[4]

Replacing pipeline Russian gas with LNG has transformed Europe into a global competitor for resources. This structural change exposes European markets to sudden demand fluctuations and logistical risks, with prices responding quickly to any disruption in the global maritime flow. ^[4]

Conflicts in the Middle East have exacerbated the crisis. Recent disruptions in the Strait of Hormuz reduced LNG exports from Qatar and the UAE by approximately 35 billion cubic meters in the first half of 2026. Since this route transports one-fifth of global LNG, the shock immediately propagates to Europe. ^[4]

To reduce bills, the Commission proposes reforming electricity network tariffs, components that constitute a quarter of household costs. The measure targets cost transparency and incentivizing efficient use of infrastructure, avoiding costly new investments. ^[4]

Intermediation through smart meters and variable time-of-use tariffs can shift consumption to low-load hours. Thus, highly energy-consuming activities, such as charging electric vehicles or heating, can be done at night with lower costs. ^[4]

Electricity becomes expensive because wholesale price is determined by the last plant activated to cover demand, often a gas plant. Even if a significant part of energy comes from cheap sources, gas influences the final bill if needed for peaks. ^[4]

Expert Noah Gordon warns that Europe lacks sufficient large-scale storage capacities (pumped hydro, batteries), remaining dependent on gas for peaks. Strengthening interconnected networks would however allow the export of cheap green energy to deficit countries. ^[4]

Temporary government support (subsidies, vouchers, capping) already costs 17.9 billion euros, potentially reaching 38.6 billion euros if extended until the end of the year, according to the European Commission. ^[4]

The Research Service of the European Parliament warns that artificially maintaining low prices slows down the green transition. Expert Matteo Prina suggests a dual strategy: temporary and targeted aid for the vulnerable, combined with massive structural investments in renewables, networks, and efficiency, so benefits reach consumer bills. ^[4]

Update

EU rejects energy agreement: 50 million Europeans with cold homes, reserves at historic minimum of 74%

The starting point of the energy crisis remains similar: almost 50 million Europeans cannot heat their homes at an adequate level, and energy ministers failed in Luxembourg (October 29) to reach an agreement on consumer protection measures. However, source E923691 reveals an essential detail absent from previous articles: EU gas reserves dropped to 74% on October 20, 2026, the lowest level recorded for this period since the beginning of 2011. The geopolitical context is deteriorating, not only through the war in Ukraine and tensions in the Middle East, but also through the closure of the Strait of Hormuz and the conflict in Iran. These events disrupt global liquefied gas (LNG) exports, the Brent oil price reaching $110/barrel, and natural gas surpassing the threshold of 100 euros/MWh. EU gas reserves, at 74% at the beginning of October, represent the lowest level for this period since 2011. Although Brussels does not signal an immediate risk of physical shortage, a very cold winter could further strain reserves, given the belligerent context in Iran and the closure of the Strait of Hormuz. Price shocks are transmitted aggressively: natural gas has become 140% more expensive compared to pre-conflict levels, exceeding 100 euros/MWh, and Brent oil is at $110/barrel. These wholesale prices determine the final electricity bill, as gas plants remain the marginal reference for covering consumption peaks. During negotiations in Luxembourg, ministers considered relaxing the deposit filling target from 90% to 80%, a move intended to avoid desperate gas purchases in the peak season, which would drive prices even higher. Consolidated LNG imports and joint purchases between states were also discussed. Technical solutions under discussion target digitalization of consumption, with the goal of installing smart meters in half of European households by 2030, allowing consumers to manage their expenses more efficiently and shift consumption to off-peak hours. None of the proposals discussed in Luxembourg were adopted. Member states have different opinions regarding joint purchases and taxation. The Council established that a compromise on network tariffs is not expected before December. ^[5]

The social impact becomes concrete for Romania: according to cited Eurostat data, 11.9% of Romanians could not afford in 2025 to keep their homes sufficiently warm, the largest increase in the EU, while the European average dropped to 8.8%. Energy vulnerability reached alarming levels in Romania. According to Eurostat data, the share of those who cannot adequately heat their home rose to 11.9% in 2025. Against the background of a drop in the EU average rate to 8.8%, Romania recorded the most dramatic degradation of the situation. With one year before the December vote, the European Commission maintains that its strategy is valid. The Commission emphasizes that the EU is better prepared than in 2022 thanks to supplier diversification, although it acknowledges that resource situations are now much more tense. ^[5]

Update

EU fails to reach agreement on energy measures; 50 million Europeans with underheated homes

A new detail element in evaluating the social impact of the energy crisis is highlighted by Eurostat data: 11.9% of Romanians could not afford in 2025 to keep their homes sufficiently warm, the largest increase of this indicator among states of the European Union. ^[6]

Update

Italy approves measures to reduce electricity bills; gas price cap

The Italian government led by Giorgia Meloni is preparing a package of measures to reduce electricity prices, which is supposed to be approved this week, after authorities in Rome reached an agreement with European Union representatives. The intervention aims to limit the effect of very high natural gas prices on electricity bills paid by the population and companies, recognizing the central role of gas in setting the wholesale electricity price in Europe. The key measure introduced by the Italian government is setting a cap of approximately 60 euros per megawatt-hour for natural gas prices destined for gas power plants, for a limited period. On the European wholesale market, electricity price is often determined by the marginal plant activated to cover peak demand, which is frequently a gas plant. Thus, even if a significant part of energy comes from cheap or renewable sources, gas influences the final bill if needed for network balancing. The Italian state will compensate companies operating gas plants for the difference between the gas price on the TTF exchange and the cap set by authorities. Financing of this scheme will come from increasing tariffs included in electricity bills, costs borne by both the population and companies, stated the Minister of Energy, Gilberto Pichetto Fratin. Minister Pichetto Fratin will elaborate a summary of the scheme, which will be submitted to the Government for approval. These measures add to existing packages in Italy, where low-income families can already benefit from social aid for electricity and gas, known as 'social bonuses'. To access social aid, beneficiaries must meet certain financial conditions. In 2026, the ISEE income threshold is set at 9,796 euros for families with at most three children and at 20,000 euros for those with four or more children. Granting social aid depends on submitting the DSU declaration, necessary for calculating the ISEE indicator, and meeting specific requirements regarding the provision of energy services. No information. ^[7]

Update

Italy is about to apply subsidies for gas plants to reduce bills

Italy is about to approve a modification to the decree on energy bills, which will refund gas-fired plants part of their fuel costs, in an effort to reduce electricity prices. The regulatory authority Arera will supervise payments, which cannot exceed the difference between the European gas benchmark level and a reference price of 58.90 euros per megawatt-hour. ^[8]

Update

EU fails to reach agreement on energy measures; 50 million Europeans with underheated homes

Parallel to tensions at the EU level, 34% of families in France face difficulties paying electricity and gas bills, according to the 2026 barometer of the national energy ombudsman. The situation has shown an upward trend, the proportion tripling since 2020 and exceeding the 18% threshold. Only a quarter of respondents did not complain of difficulties, and 86% consider that energy expenses weigh heavily on their budget. Vulnerability is concentrated among young people, those under 35 being the most exposed, with 55% reporting payment difficulties, well above the national average. Romanians and Italians were not included in this representative French survey, although France is among the countries affected by the European energy crisis. Cost-reduction measures have led 72% of families to restrict heating during winter, a decrease in comfort reflected in 35% of households suffering from cold for over 24 hours during the cold season. Temperature-related difficulties do not just relate to winter: this summer, 65% of participants complained of heatwaves in their homes for at least one day, compared to 49% in 2025. The total of households suffering from both winter cold and summer heat reached 28%. Energy austerity measures were also adopted to manage these climatic extremes, as 87% of French people desire bill limitations, making them dependent on investments in energy efficiency and insulation. ^[9]