The European Commission is reportedly considering a return to 2022-style emergency energy market interventions, according to diplomatic sources familiar with ongoing discussions. The deliberations come as natural gas prices show renewed volatility and several member states face storage capacity challenges ahead of winter.
Officials are evaluating measures last deployed during the peak of the Russia-Ukraine energy crisis, including price caps, mandatory demand reduction targets, and windfall profit taxes on energy companies. ‘We’re seeing some concerning parallels with 2022 market conditions,’ said one EU energy official who requested anonymity due to the sensitivity of discussions.
The potential policy shift follows a 38% spike in benchmark TTF gas prices over the past month, though prices remain well below 2022 peaks. Analysts attribute the increase to maintenance outages at Norwegian gas fields and heightened Asian demand for liquefied natural gas (LNG).
Energy Commissioner Kadri Simson last week warned that ‘the EU must remain vigilant’ about energy security. However, some member states oppose renewed market interventions, arguing they distort energy markets. ‘The 2022 measures were emergency actions, not permanent solutions,’ a German economics ministry spokesperson told reporters.
Industry groups have cautioned against premature intervention. ‘Current price movements reflect normal market dynamics, not a supply crisis,’ said the head of Europe’s energy traders association. The Commission is expected to make recommendations by mid-September when it presents its winter preparedness package.