Effects of the EU Electricity Markets Opening on Competition and Prices
Effects of the EU Electricity Markets Opening on Competition and Prices

Summary/Abstract: The paper studies the ongoing regulatory, institutional and organisational developments in EU energy sector during the last two decades that change the way electricity markets operate. In particular, it addresses the EU efforts in creating competitive and sustainable electricity markets. Its aim is to explore the effects of the reform on market competition and electricity price evolution. The paper firstly presents the specific aspects of the electricity market, which helps to understand its overall functioning. The current electricity market structure, participants behaviour and market performance are discussed. The analysis presents the contradictions between the EU energy and climate targets and their adverse impact on end-consumers, who are stated as the main beneficiaries of the reform. The study comes to the conclusion that the persistence of shortcomings in the electricity market defined by policy deficiencies at an EU level and diverging energy policies at a Member State level requires further efforts to make national markets work as a single European energy market with common rules and prices.

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