The Effects of Electricity Market Liberalisation in the European Union

Since the 1990s, the EU has been trying to liberalise electricity markets. The anticipated benefits were efficiency gains and lower prices for consumers while guaranteeing security of supply throughout the EU and promoting energy efficiency and the use of renewable energy resources. In other sectors, such as the telecommunications industry, liberalisation has led to substantial price decreases.

This thesis analyses the actual impact of liberalisation on competition and electricity prices. Based on a theoretical framework for electricity market liberalisation, the three liberalisation directives adopted by the EU are being examined. Subsequently, electricity prices for private and industrial consumers and competition in wholesale and retail markets in 15 EU Member States are being analysed. The analysis reveals that, although some progress has been made, markets still show a high degree of concentration and electricity prices have generally increased.

European energy market liberalization: experiences and challenges

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