Nobody downloaded yet

Development of European energy market - Essay Example

Comments (0) Cite this document
Summary
This essay is intended to analyze the current position of the energy market and the steps taken by the government for implementing liberalization. The future proposals, which are intended to be implemented, would also be analyzed. European Commission initiated liberalization of energy market…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Development of European energy market
Read TextPreview

Extract of sample "Development of European energy market"

Download file to see previous pages Power generation, its trade and supply are opened to competition. However, network activities such as lower voltage distribution and high voltage transmission are still regulated by national monopoly. The liberalization started as a result of Electricity Market Directive of 1996. By the year 2000 most of the member states implemented the liberalization package. But some members especially France and Germany did not agree with these policies (Prospects for the internal gas and electricity, 2007). The Directive of 1996 was updated later, in the year 2003. The legislation ensured security of supply, efficient operation of power generation plants, efficient network access, access to storage, and transparency in the dealings of all member countries and thus facilitated a fully open energy market to all member countries. The industrial markets were opened up for competition by July 2004. By 1st July 2007, all the household users also had access to the open market and both industrial and household customers could select a provider of their own choice in the competitive market. This resulted in price reduction, increase of reliability and better quality service to all customers. Based on the legislation in 2003, national regulatory bodies were set up in each country to oversee the monopolies and European Regulators Group for Electricity and Gas (ERGEG) was set up to give advice to the European Commission to implement liberalization package more effectively (Liberalising the EU energy sector, 2009). European Commission conducted an inquiry in the market in January 2007 to study the nature and effect of open market and found that the structure of the market is still the same as old monopoly structure. It was dominated by companies which had both power generation as well as its transmission under their hold and therefore could control the prices. They prevented the entry of new companies into the market. This became one of the biggest obstacles for the complete impletion of liberalization package (Talus, 2008). Other major issues in the field, which still needed attention, are large-scale investments to set up more power generation plants and to increase the transmission capacity and the integration of overall electricity system. The third package of proposal for energy sector legislation is presently under discussion and this involves updating of the directives on electricity and gas, regulations of cross-border trade of electricity and gas and the establishment of a Cooperative Agency for Regulators. The key factors in the proposal, which was published on 19th September 2007, are the following (A competitive market, 2009): According to this proposal in order to ensure better competition the energy production sector has to be separated from the supply section. This would facilitate easy access to the market for competition. The proposal has put forward two options for the companies for this procedure. One is ownership unbundling in which the companies that deal with both power generation and its transmission has to sell part of its assets.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Development of European energy market Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Development of European energy market Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/politics/1520757-european-energy-market
(Development of European Energy Market Essay Example | Topics and Well Written Essays - 1250 Words)
Development of European Energy Market Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/politics/1520757-european-energy-market.
“Development of European Energy Market Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/politics/1520757-european-energy-market.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Development of European energy market

European Single Market

...? European Single Market Part One Were Ultra and Media en d to ban the Infran Produce? One of the important characteristics of the market of the European Union (EU) countries is the free movement of goods between economies. This movement has facilitated to develop the internal market of the EU which in turn has encouraged the European businesses to grow and flourish. The EU has formulated laws to ensure that no quantitative restrictions are placed on the import and export of goods between the member countries. There can, of course be exceptions to such cases. This paper attempts to analyze the pros and cons of such an...
14 Pages(3500 words)Essay

European Labour Market

...? European Labor Market The proper functioning and the organization of the labor product markets has been in an indirect relation with the economic growth as the increase in demand is compensated by the supply in the domain of less regulated market and because of the fact that the research incentives largely depends on the institutions, competition and openness. The capacity of appropriating profits in the exchange for research expenditures has been specially addressed within the purview of the new growth theory. The macroeconomic policy and the competitiveness in price are also important to the growth. The fiscal and the monetary policy also may lead to the reduction of...
16 Pages(4000 words)Essay

European Single Market

...?Running head WILDBEAR: EUROPEAN SINGLE MARKET European Single Market Insert Insert Insert January 29, A report from the Head of Legal Department, Unifilm plc Overview Our company, Unifilm plc is a registered public limited company in the United Kingdom. United Kingdom is one of the key members of European Union (EU), a union that draws its members from the independent and sovereign states found in Europe. As such, our operations as a company are under the provisions of the EU laws. The EU has had a number of treaties that outlines its operational policies. The first two treaties are the ‘Treaty on European Union (TEU) and the Treaty on...
7 Pages(1750 words)Essay

The Single European Market

...the enactment of various policies in place, much of the project is yet to be completed. Indeed, with the present challenges realized in the process, it is becoming more impossible to complete the Single European Market (Crouch, 2010). Efforts to realize the European single market continue to face a lot of challenges. Language barriers amongst the member countries continue to present a lot of challenges to the realization of a single unified market. Moreover, it is realized that different countries in Europe have varying levels of economic development and this presents a challenge to a single market creation. In this...
3 Pages(750 words)Essay

The Single European Market

... of the single market and have hampered way of change. For example French’s state ante in the energy industry has led to the elimination of the energy market from the single market. The absence of a common supranational and strong decision making structures among the member states has provided setbacks in making advancements on the barriers to free movement of services, goods capital and labour (Pohl & Sorsa, 1992, pp. 47). Works cited Barnard C., 2002. The law of the Single European Market: Unpacking the premises. Hart Publishing. Pohl G. and Sorsa P. 1992. European Integration and Trade with the Developing World page 75. World Bank Publications... ? Single European market One of the major aims of the...
3 Pages(750 words)Essay

European Labour Market

...EUROPEAN LABOUR MARKET: FRANCE Introduction The level of unemployment still remains high in many of the European countries despite the more efforts that have been directed by the concerned in trying to mitigate the situation. The level of unemployment has been on the increase which has raised concern from many stakeholders who have attributed the increasing rate to insufficient level of economic activity in the region and the malfunction of the labour markets. The labour laws in the region have played role in the market and there have been many calls for review of the labour laws in most countries especially France which has been worst hit by labour crises. There has been evidence of the persistence of the stock of unemployment... as...
21 Pages(5250 words)Essay

European financial market

...European financial market INTRODUCTION The banks are the best examples of financial intermediation. Banks(Levine, 1999) offer their services to accept deposits from their current and new client depositors. The banks also offer to grant loans (Shetty, 1995) to possible client lenders. The banks will grant loans only if the feasibility study( Thompson, 1999) given by the company applying for the bank loan can show proof that it can pay on time the monthly or quarterly or annual installments(Meigs, 1995). Pooling of funds is one of the better tools for management to use in order to maximize profits. The paragraphs below will explain what pooling of funds(Reilly, 1997) is all about and also what financial...
7 Pages(1750 words)Essay

European Car Market

...ASSIGNMENT The European Car Market The European car market is dominated by only a few competitors. The added ratio of these competitors is more than 70% of the total market revenue. For a market to be classified as oligopolistic, the requirement is that the added market share of the big 4 rivals should constitute to 40% of the total market. With such fierce competition, there is no reason that any car industry can fall under the category of a perfect competition. The goal of the oligopolies is mainly to attain a strategic edge over their competitor. The competing firms in the European...
8 Pages(2000 words)Essay

Single European Market

...On December, 31st, 2007 the Single European Market has celebrated its fifteenth anniversary. The age is not so significant by historical measurements, and nevertheless the most courageous forecasts of the development of the European integration, which had been made in the beginning of 1990s, had met the expectations. The Single Market today is an attractive and rather transparent environment for business and that is why during last fifteen years it has increased more than by one third. Owing to the unity of the market, the conditions of life in Western and Central European countries have notably approached. The Single...
7 Pages(1750 words)Essay

LAW2112 European Single Market

...European Single Market A. Marie (French) A linguistic competence requirement in Welsh may not be discriminatory, and therefore not a breach of the freedom of movement of workers under EU law, as against Marie, if the school where she applied as a PE teacher uses the Welsh language as its medium of teaching. Article 45 s(2) of the Treaty on the Functioning of the EU provides that the freedom of movement of workers granted to EU citizens under the said law entails the elimination of discrimination on the basis of nationality that can render the purpose of the said freedom, which is mobility within the Union, defeated. However, under Regulation (EEC) No 1612/68 issued on October 15 1968 on freedom of...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Development of European energy market for FREE!

Contact Us