(Feb 18): The European Union (EU) will work with member states to allow for more flexible refilling of gas storage in coming years to reduce stress on the system that sent prices to the highest level in two years earlier this month.

The European Commission, the bloc’s executive arm, will “promote more coordinated and flexible gas storage filling, including with dynamic targets,” as part of a planned extension to the bloc’s gas storage targets beyond this year, according to a draft of its upcoming Clean Industrial Deal, which is due to be published at the end of the month. The bloc is also set to examine the need for stricter oversight of the region’s gas markets.

Gas prices in Europe have surged amid worries that energy traders are using the targets laid out by the EU’s gas storage targets to speculate on price rises. Germany has led calls for more flexible targets to damp this phenomenon this year. The commission is due to propose an extension to the current targets early next month.

Europe is grappling with how to bring down the cost of energy in order to help its industry compete globally with the US and China. Gas prices hit the highest level in two years earlier this month on fears over security of supply, but there’s also concern among policymakers that speculation on the markets are exacerbating volatility in the market.

The EU will launch a consultation to determine whether funds and traders active in the EU’s gas market should be brought under full regulatory oversight of the bloc’s key pillars of financial supervision, such as MiFid and Remit, according to the draft, which could still change prior to publication on Feb 26.

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