The past few weeks have been dominated by falling gas supplies and, by extension, rising gas prices. As a result of this growing tension in gas markets, politicians are experiencing increasing pressure to intervene in the markets. This manifests itself in several ways. Firstly, calls for a new price cap on gas are increasing. In addition, there is increasing talk of the need for an extension of the filling task of gas stocks from the government and the holding of strategic gas reserves. Insurances cost money, and this clashes at a time when politicians are simultaneously calling for lower gas prices for households.
Several conclusions can be drawn from this mix of market developments and the pressure felt by politicians to intervene here:
- Intervention in the market is market-distorting and can be counterproductive for filling stocks and gas prices;
- Focusing only on gas reserves ignores the other options (such as imports and demand reduction) to meet gas demand;
- Ensuring security of supply (obligation to fill gas stocks) costs money and thus clashes with the political desire for lower gas prices;
- A strategic stock may be useful, but it does not necessarily help against price fluctuations;
- Protecting against unnecessary price volatility can only be countered with (politically unpopular) long-term solutions;
- Decoupling of the themes physical and financial gas markets is necessary;