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Competition in European Electricity Markets

Competition in European Electricity Markets

A Cross-country Comparison

Edited by Jean-Michael Glachant and Dominique Finon

This book focuses on the diversity of electricity reforms in Western Europe, drawing evidence from ten European Union memberstates plus Norway and Switzerland as associate members. The contributors analyse the various ways of introducing competition in the European electricity industries, and consider both the strategies of electricity companies and their behaviour in electricity marketplaces. They also offer an explanation of the differences of reforms by the institutions and the industrial structures of each country which shape the types of marketrules, industrial restructuring and public service regulations which have been adopted.


Dominique Finon and Jean-Michel Glachant

Subjects: economics and finance, competition policy, energy economics, industrial organisation


Dominique Finon and Jean-Michel Glachant The texts published in this book analyse the various ways in which competition is introduced in electricity industries in Europe. They are papers presented at the international conference ‘Electricity in Europe in the 21st century: what performances and what rules of game?’, held at the ParisSorbonne University under the high patronage of the European Commission.1 All the papers were revised and their content updated three times between November 1998 and May 2002. The issues of reform in the electricity supply industry (ESI) in Europe have been on the agenda for a while and remain a high priority among policy-makers, feeding political debates and controversies between economists. Some pioneering countries, such as the United Kingdom and the Scandinavian countries, deregulate their own electricity industries by themselves; but others define reform in terms of the requirements of European Union Directive 96/92 on electricity markets. There are considerable differences between the European Commission and some member states and, as a result, a number of institutional compromises have been defined in various European countries for implementing regulatory reforms. What is the consistency and the viability of the new competition-based model promoted by the European institutions and a number of governments? The prevalent institutions and the structures of each ESI have shaped the types of market-rule, public service regulation and industrial structure changes that were adopted in each reform. However, the improvement effects of each reform and the performance levels of new electricity markets are...