Frontier to support the European Commission’s review of common gas purchasing

Frontier to support the European Commission’s review of common gas purchasing

The EU Energy platform is an initiative set up by the Commission and Member States in April 2022, aiming to contribute to security of energy supply and reduced gas import prices.

As part of this, the Commission developed a demand aggregation and joint purchasing mechanism (“AggregateEU”), which allows companies from the EU or from Energy Community to jointly purchase gas from third-party suppliers on a voluntary basis.

Initially introduced as an emergency measure, the Council recently extended the legal basis for this mechanism until 31st December 2024. Furthermore, the Council and the Parliament reached a provisional political agreement for part of the hydrogen and gas markets decarbonisation package. This provisional agreement also foresees a permanent mechanism for voluntary demand aggregation from 2025 onwards, including considerations for such mechanisms to support market development for decarbonised gases.

The Commission has commissioned Frontier to evaluate and elaborate on potential options for reform of the current demand aggregation and joint purchasing mechanism.

The scope of the study is to analyse AggregateEU’s impact on the market and security of supply and how the functioning of joint purchasing could be adapted if it becomes a more permanent instrument. The study will also analyse the future possible uses of joint purchasing for other commodities (for example renewable hydrogen). Finally, it will cover the various possible ways of organisation of companies to take part in the mechanism, including different kinds of consortia or cooperative arrangements and considering the risks and existing legal and market frameworks. As part of the study, we will consult with relevant market stakeholders to get their views on the mechanism and potential adaptations.

For further information please contact or call +44 (0) 20 7031 7000.