On 13 June 2005 the European Commission launched an inquiry into barriers to competition in the EU's energy sector. When the final findings are announced next year, they are likely to strengthen the case for an EU-wide energy regulator. However, the recent setback for the EU Constitution means that the momentum is no longer behind pan-European projects of this type.

• The Extended Expert View analyses the regulatory agenda affecting the power and gas markets in all of the EU25 countries.
• We look at the issues that are the focus of the Competition Commission's inquiry, such as customer choice and a level playing field for new entrants.


Highlights



The 2nd Energy Directive focused on creating a single EU market in power and gas, bringing to the fore two issues: the physical and "virtual" infrastructures required for integrating the various national markets, and energy companies' ability to compete outside of their home market. Both require regulatory powers that transcend national borders.





The Commission will focus on new entrants' difficulty in accessing wholesale markets on equal terms with incumbents, and on the related issue of customers' continuing difficulty in finding enough competitive deals on the retail market. It is likely that EDF will come under special scrutiny for its continuing dominance of the French power market.





While a fresh look at the energy markets is welcome by itself, the inquiry's main impact would be in furthering the case for a standing EU energy regulator. However, such a body is now less likely than even two months ago, as the French and Dutch votes against the EU Constitution have taken the wind out of the pan-European regulation agenda.



Reasons to Purchase


• Evaluate the likely implications of the European Commission's new regulatory agenda for the energy sector, and how it may affect your company.
• Better understand the existing barriers to greater competition within the EU energy markets, and how they are likely to be tackled in the medium term.