The Liberalization Of Electricity And Natural Gas In The European Union

In this important book, notable European experts in the energy field provide valuable perspectives on the principal issues raised by the liberalisation of the electricity and natural gas markets in the EU. Lawyers, business people, regulators, and policymakers who deal with matters and issues in the energy, natural resources, and environmental fields will find the details and insights presented here of great value.

. . . this volume comes across as one of the most profound sources on the specifics of European electricity market restructuring. Competition and Regulation in Network Industries The SESSA study on the Internal Energy Market was an important and influential contribution towards the Commission s proposal for a third package of proposals, intending to bring more effective competition and better security of supply to Europe s energy markets. This volume, based on the results of the study is an important and welcome contribution to the ongoing debate on these proposals. Andris Piebalgs, Commissioner for Energy at the European Commission The chapters in this book are written by the leading European scholars who have studied the structure, behavior and performance of liberalised electricity markets in many European countries as well as in other regions of the world. Both the analyses and the policy recommendations contained in this volume are well worth careful consideration by policymakers in Europe, as well as by policymakers in other countries that are seeking to adopt successful electricity sector liberalisation programs. From the foreword by Paul L. Joskow, Massachusetts Institute of Technology, US Dynamism or dissipation? Competition or national champions? Will enlargement promote or delay reform? Energy economists contemplate the challenges posed by the restless and discontent European Commission. Stephen Littlechild, University of Birmingham and Judge Institute for Management Studies, University of Cambridge, UK The challenge of European electricity reform is being met, although gradually, delays notwithstanding. This book provides precious help in spotting where the necessary further efforts should be directed. In the US mistakes and delays have occurred, no less than in Europe, but an aggressive federal regulator (absent in Europe) is working to overcome them. Electricity markets do not happen, they have to be built. Here are suggestions for a workable European market design. No ideology, just competence and wisdom from both theory and experience. Will Europe learn? Pippo Ranci, Università Cattolica del Sacro Cuore, Italy The realisation of a European internal market for energy is still a work in progress. Written by leading European scholars and discussed with major energy stakeholders, this book presents a thorough analysis of the motives and methods needed to achieve a single European energy market. The authors discuss the critical issues surrounding an internal European energy market including: market design, competition and market power, sustainable energy versus the market, regulation and harmonisation, benchmarking and indicators, modelling of competition, market prices and energy forecasts. They provide a multi-disciplinary assessment of the best way to build the market base of a future European energy policy. Electricity Reform in Europe will be of great interest to decision makers and managers in the energy industry or business sector as they will be able to see the whole European energy policy picture beyond their own corporate interests. The book will also appeal to national and European energy administrations, regulatory bodies and policy makers providing a synthesis of all relevant policy issues.

This book presents the first in-depth analysis of the export of the EU electricity acquis, through the imposition of an EU-type regional electricity market (REM) in SEE within the enlargement process. Among other germane issues, the author discusses the following: the suitability of the European model of electricity markets’ liberalization for economies in transition; the use of the Public Services Obligations (PSO) to address the impact of electricity markets liberalization; the use of regulated prices and measures for granting priority rights for cross-border capacity allocation as PSOs; the Court of Justice judgement in Federutility on the sustainability of states’ protection of their different types of customers, including the large businesses; the Energy Community as a step towards a Pan-European Energy Community; the effect of simultaneous national electricity markets liberalization and cross-border regional integration of national electricity markets; and, the interplay between liberalization policy and reforms and the regulatory tools available to address their impact on provision of public services. The author’s proposed rethinking of the public services obligation offers new views on using this tool more effectively and proposes possibilities for its practical implementation through measures such as energy efficiency, allocation of interconnectors’ capacity, transparency, addressing the affordability issue and the protection of vulnerable customers. The book is remarkable for its clear analysis of the policy lessons arising from the export of the idea of liberalized energy markets, and will be welcomed by practitioners, officials, academics and others in energy law and policy for its informative and forward-looking overview of the national and cross-border reforms in the Energy Community framework.

Recent years have seen a major growth in the European law concerning the operation of the energy industry, especially with respect to electricity and gas. Several directives have been adopted that are aimed at the promotion of competition in this key sector of the European economy. At thesame time, the jurisprudence of the European Court had developed further on matters such as access to networks, import and export monopolies and security of supply.In this book the authors examine the principal legislation, Treaty provisions and decisions of the Court of Justice and Court of First Instance of the EU as they related to the promotion of competition in European energy markets. In particular, two chapters are devoted to a detailed analysis of theprovisions of the two directives that set out common rules for the creation of an internal market in the electricity and gas sectors. In each case, the analysis is set in the context of the various programmes of energy market liberalization and privatization in the Member States, which aresummarized in this book. However, the authors also take the wider pan-European context into account, explaining the requirements and the implications of the European Economic Area Agreement, the Energy Charter Treaty and the Europe Agreements with countries of Central and Eastern Europe.The approach adopted by the authors is both analytical and historical. They locate the legislation in the context of the EU Internal Market programme that began in the late 1980s and explain the roles played by the various parties (energy industries, consumers and EU institutions) in shaping thefinal legislation. Importantly, they explain how the framework character of the energy directives has led to further important rule-making in the implementation of the directives across the EU. They conclude that a co-ordinated response between the European Commission and the national regulatorswill be essential to resolve problems arising in the transition to a competitive energy market in the EU.

Doctoral Thesis / Dissertation from the year 2020 in the subject Law - European and International Law, Intellectual Properties, grade: 2,2, Leuphana Universität Lüneburg (Fakultät Wirtschaftswissenschaften), language: English, abstract: This doctoral thesis examines how European merger control law is applied to the energy sector and to which extent its application may facilitate the liberalisation of the electricity, natural gas and petroleum industries so that only those concentrations will be cleared that honour the principles of the liberalisation directives. In 2007, the Commission emphasized that a real internal European energy market is essential to meet Europe’s three energy objectives. These were for example competitiveness to cut costs for citizens and undertakings to foster energy efficiency and investment, sustainability including emissions trading, and security of supply with high standards of public service obligations. The EU issued three pre-liberalisation directives since the 1990s. Dissatisfied with the existing monopolistic structures, in Germany through demarcation and exclusive concession agreements for the supply of electricity and natural gas, which were until 1998 exempted from the cartel prohibition provision, and the prevalence of exclusive rights on the energy markets, the Commission triggered infringement proceedings against four Member States. The CJEU confirmed that the Commission has the power to abolish monopoly rights under certain circumstances and the rulings had the effect of convincing the member states to enter into negotiations for an opening up of energy markets owing to the internal market energy liberalization directives 1996 / 1998 / 2003 / 2009 / 2019. The 2nd liberalisation package of 2003 brought a widening of market opening and acceleration of pace of market opening to a greater number of eligible customers and an increase in the provisions on management and legal unbundling. The 3rd energy package of 2009 addressed ownership unbundling of key-infrastructure ownership and energy wholesale and retail supply consisting of three regulations and two directives. The 4th liberalization package inter alia consists of a new IEMD2019 and IGMD2019 and addresses energy efficiency and rules on good governance in the Energy Union. A brief analysis of the economic implications of concentrations is followed by an assessment of the evolution of European merger control law since 1989, 1997 and 2004. Then, the theoretical findings are contrasted to the results of recent merger proceedings in the energy sector.

Master's Thesis from the year 2010 in the subject Business economics - Economic Policy, grade: 1, Oxford Brookes University, language: English, abstract: The main understanding of this work will suggest that the electricity market liberalisation need a new impulse from the biggest market players and from the regulators. The liberalisation process is defaulting; the practice and implementation should more precedes as the electricity market in the EU. The base; the Directives are settled by the Commission. The implementation by the big four companies on the market is be a long time coming. There is a wide range of different national experiences of liberalisation electricity markets in terms of the degree of the concentration of generation, the stringency of unbundling public ownership and regulatory institutions. The thesis is combining the “Third Party Access” and the “Single Buyer Model” with its empirical evidence and their implementation for Germany. However, the results of this report will reach a number of significant conclusions at the end of the thesis and will make several policy recommendations. (Blaxter,2006). It draws a distinction between observations that are relevant to the design a well functioned electricity markets. The German electricity sector has undergone considerable changes throughout the past few years (RWE, 2007). Main developments were related to liberalisation of electricity markets (generation and sell of power) and transport of electricity (grid operations), the evolving European CO2 emissions trading scheme and the promotion of renewable electricity generation.

This third volume of EU Energy Law and Policy Issues presents an overview of some of the most recent developments taking place in the EU energy sector at a time when the Third Energy Package is likely to be, or has been, implemented in the EU Member States. In this respect, the reader will find a number of contributions which offer detailed and critical views on some of the main issues tackled by the Third Energy Package. Aside from this, the relationship between sector-specific regulation and the rules of general competition law is examined in the second section of the book. This section also contains particular contributions on access regimes in gas and electricity markets, as well as an innovating analysis on the methods for allocating allowances under the EU emissions trading scheme and the interaction of such methods with EU State aid rules. Just like the previous volumes of the book, the third section offers a deep insight into the external aspects of EU energy policy. Accordingly, the role of the Lisbon Treaty in promoting EU energy policy in the international arena is scrutinized, in addition to the most recent evolutions on the topical issue of the Energy Charter Treaty. This section is completed with a daring contribution about the need to adopt a comprehensive theory of legal harmonization between the EU and third partners, which is presented using the specific case of the EU-Russia Energy Dialogue. Some fundamental issues regarding the environmental aspects of EU energy policy undergo an in-depth study in the final section of the book. Not only is the legal regime of energy efficiency in energy-related products examined, but also the issue of carbon constraining policies under WTO law. Finally, the electricity industry's viewpoint on the 2020 targets rounds off this third volume with judicious comments. (Series: ELRF Collection - Vol. 3)