The competition is not quite right on the european electricity market 

By Maj-Britt Meyer Hansen, 27. April 2007

On behalf of the Commission, an independent consultant agency has drawn up a large analysis on the electricity markets in Belgium, the Netherlands, Spain, the UK and France from 2003 to 2005.

The conclusion is that an increase in the fuel prices can explain some but not the entire increase in prices that has been observed.
 
- There is still a ”price remnant” which must be put down to the lack of competition. “The extra price” is particularly high during the times when there are only a few suppliers to meet a certain demand, says Camilla Rosenhagen, Danish Energy Association.
 
- The analysis confirms the conclusions in the EU Commissions sector report on the energy mar-kets. Something points to a possibility that certain producers are withholding capacity from the market – perhaps with the purpose of obtaining higher prices.
 
- A more efficient electricity market can be created for instance by expanding and using the trans-mission grid, also across the boarders. That way more suppliers can get in the running and thereby  benefit the competition.


Contact

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  • EU Manager, M.A. (Politics)
  • Camilla Rosenhagen
  • T: +45 35 300 420
  • M: +45 22 750 420

Links

Read more of the Commissions sector report.
The Commission


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