Following a year of energy market disruption, the European Union is preparing broad steps to curb electricity prices and secure steady supplies across member states. The European Commission is calling for urgent intervention in electricity markets while also pursuing wide structural reforms. A gathering of the 27 energy ministers is planned for Friday to push for a solid agreement that can steer policy through the months ahead. Leading energy players are sharing analyses and recommendations for the reforms on the horizon.
The three major Spanish utilities Iberdrola, Endesa, and Naturgy reached a consensus this week to back measures that cap gas prices to prevent spillover into electricity markets. They also signaled the need to counter speculative activity as a primary driver of price surges, noting how fragile gas markets feed into broader energy costs. Long after the summer, the cost of natural gas on international markets remains exceptionally elevated.
Francisco Reynés, chair of Naturgy, urged decisive action against speculation in the gas market during the 7th El Economista Energy Forum. He argued that the European gas benchmark, the Title Transfer Facility, should no longer be treated as the primary European reference in today’s market. The price is driven more by physical constraints on LNG delivery than by the classic balance of supply and demand. This shift has consequences for households’ living costs and for the competitiveness of European industry, with the Title Transfer Facility index acting as a central price signal across energy contracts.
Reynés stressed that if one benchmark is sidelined, a different, more liquid reference must be found. The EU cannot rely on a market index that functions more as a financial vehicle than a true reflection of physical gas supply and demand. The Dutch gas market currently hosts vast volumes of derivatives trading, far outstripping actual gas flows, a situation Reynés described as incompatible with genuine market signaling.
against gas volatility
Endesa chief executive Joseph Bolás criticized the Title Transfer Facility as no longer representative, noting that speculation has become embedded in the price. With prices reaching as high as three hundred euros per megawatt hour, he called the situation unacceptable and urged measures to curb gas price volatility to stabilize electricity costs.
In recent months, Iberdrola has openly condemned the rise in gas prices as the root cause of the price crisis. The company has argued that policy responses should focus on the gas market rather than on electricity alone. According to Mario Ruiz Tag, Iberdrola Spain’s chief executive, the root of the problem lies in the aggressive speculative environment surrounding fossil fuels. He warned that the high cost of electricity is a direct reflection of high gas prices, underscoring the need for targeted action at the source of the problem rather than merely treating the symptoms.
Industry leaders emphasize that any effective reform must address the mechanics of gas pricing and the risk of market manipulation. Governments in Canada and the United States are watching similar energy dynamics, looking for lessons on how to stabilize wholesale markets and household bills. The discussion centers on aligning regulatory tools with real world supply and demand, ensuring that price signals reflect physical delivery and system reliability rather than speculative bets.
Experts argue that market integrity hinges on transparent pricing, realistic benchmarks, and consistent policy signals that do not distort incentives for investment in LNG infrastructure and gas storage. The overarching aim is to reduce volatility, protect consumers, and maintain industrial competitiveness without compromising the reliability of energy systems across Europe.