European Commission report on electricity and gas markets

DG Competition issues paper (54 pages, PDF) on competition in electricity and gas markets. This identifies a number of alleged impediments to competition, including a lack of availability of wholesale electricity and gas for new non-vertically-integrated entrants in downstream markets, lack of information about wholesale markets or transmission capacity, and allegations by competitors about abusive anti-competitive practices by incumbents and network operators.

The report contains a substantial number of pie charts and other graphs, but not so much analysis of whether the allegations of illegal conduct that it reports are based on fact. Although described as an issues paper and not a consultation on remedies (which is expected in 2006), the paper floats some proposals, including that "unless more efficient use of revenues is available, congestion fees should be ringfenced with a view to using the revenues for reinforcing the existing [electricity] interconnectors".

For further information or advice please contact Franck Latrémolière.

Filed under DG Competition, Electricity.

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