Proposals by the European Commission (EC) to tame soaring energy costs don’t alter the role natural gas plays on the continent and may do little to rein in the volatility that has ruled the market this year.

The EC proposed revenue caps on some power producers, a windfall tax on the excess profits of fossil fuel companies and targets to cut electricity demand to help reduce consumer energy bills. Excess profits and revenues would be redirected to consumers, but the European Union (EU) executive branch avoided proposing price caps for imported natural gas. 

“I don’t think the measures proposed by the Commission will help reduce gas prices,” said Rystad Energy’s Carlos Torres-Diaz, head of gas and power markets. “I think the proposed solution is more reasonable than...