News item | 06-04-2023 | 3:00 PM
The government has further elaborated the measures that the Netherlands can take in the event of a serious gas crisis. It concerns the measures that belong to the highest level of the Gas Protection and Recovery Plan (BHG): an emergency situation. No shortage of gas is expected in the short term. The measures from the BCR have been further elaborated in order to be well prepared in the unlikely event of an emergency in the future. The elaboration consists of a preparation for the savings tender, with which companies temporarily purchase less gas for a fee. And a further elaboration of the shutdown plan. Shutting down companies and other large gas consumers is an extreme measure if there is a threat of a shortage for households and other protected customers.
Protect and Recovery Plan for Gas
The aim of the BCR is to compensate for acute shortages so that the gas system continues to function. In addition, the plan is aimed at ensuring that gas supplies to households, hospitals and other protected customers continue for as long as possible. Last summer, the government declared the first level of the BCR (‘early warning’) because Russia supplied less gas to Europe. Because the gas storage facilities are relatively well filled, the import capacity for liquefied gas (LNG) has expanded considerably and households and businesses use much less gas, the government does not expect it to be necessary in the short term to go to the second level (‘alarm’) about to go.
Minister Jetten (Climate and Energy): “The gas storages are well filled, we use much less gas and the import of liquefied gas has expanded considerably. We therefore do not expect the Netherlands to end up in an emergency situation in the short term. But the uncertainty in the global gas market has not disappeared. We are prepared with the further elaboration of the energy saving tender and the load shedding plan to a gas crisis if we are unexpectedly confronted with it.”
Savings tender
With the savings tender, companies are stimulated by a price incentive to voluntarily use less gas when a shortage threatens to arise. The aim of the scheme is to produce around 3 million cubic meters (m3) save gas per day if the scheme is used. Companies can indicate in level 2 of the BCR at what cost they can save a certain amount of gas. By means of an auction system, companies that receive less subsidy per m3 gas questions addressed earlier. In level 3 (’emergency situation’) the scheme will actually take effect and the participating companies will reduce their gas purchase by the amount pledged. In connection with the state aid framework, the scheme is still subject to approval by the European Commission.
Shutdown plan
The (partial) disconnection of non-protected customers is a far-reaching measure that only comes into the picture if – despite earlier measures from the BCR – a shortage threatens for households and other protected customers. The government has commissioned follow-up research into how social and economic disruption can be limited as much as possible when a shutdown is necessary.
The shutdown strategy is divided into 4 steps. If the gas shortage has been covered in step 1, the remaining steps may not need to be taken. Steps 1 and 4 monitor all non-protected customers (about 250,000), Steps 2 and 3 only to large-scale users (about 9,000).
- The first step is the ‘cheese slicer method’: all non-protected customers must reduce their gas consumption by 20% compared to consumption on 1 January 2022. Research shows that the social and economic consequences of this reduction are relatively limited. Customers who have already reduced consumption by 20% or more do not need to take this step again.
- In the second step, some of the large-scale consumers within a sector (specific locations) are disconnected. This means that the production of a sector does not immediately disappear completely. This involves disconnection to the minimum level that is necessary to prevent safety and environmental risks and/or disproportionate damage to installations. This is based on 10% of normal consumption. The preparation for this step will be further elaborated in the near future. If the load shedding plan is deployed in the short term, this step will be skipped for the time being.
- In the third step, all large consumers within selected sectors are disconnected to a minimum level, in order of increasing social impact. Switching off always has major consequences. Based on research, the government has made a classification of three groups with sectors, from relatively less to relatively more disruptive effect on society and/or safety. For example, the effect may be relatively less if it concerns non-essential products or products with a long lifespan.
- In the fourth step, the remaining unprotected customers are disconnected to a minimum level.