Eu Competition Law Sector Inquiry
The overall objective of the Competition Law Sector Inquiry is to address the barriers currently impeding the development of a fully functioning open and competitive energy market throughout the EU by 1 July 2007. The Competition Law Sector Inquiry has highlighted three major "problems areas" which are causing the European internal energy market to not function properly:
1. It is too highly concentrated (incumbents have very high market shares in their respective national markets). This restricts competition at the wholesale and retail level, as new entrants are dependent on a vertically integrated incumbent for services through the supply chain.
Proposed actions
· In the context of merger control, implementation of structural remedies such as divestiture requirements to prevent further market concentration.
· Introduction of energy release plans to develop market liquidity and reduce the effect of concentration. This includes electricity virtual power plant auctions and......
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