News in Brief, BB200706
Study on electricity markets supports the results of the Commission's Sector Inquiry
The European Commission has published a detailed study carried out by an external consultant, which finds that fuel costs have contributed to the increase of EU electricity prices since 2003, and that wholesale electricity prices are significantly higher than could be expected in entirely competitive markets.
The differences are most noticeable when only a few generators with available capacity are needed to meet demand, especially at peak time. The results of the study broadly support the conclusions of the Commission's Final Report of the Energy Sector Competition Inquiry (see IP/07/26 and MEMO/07/15), namely that competition in EU wholesale electricity markets is not yet optimal.
The electricity study report was submitted by London Economics, in association with Global Energy Decisions.
European Commission Press release:
Study on electricity markets supports the results of the Commission's Sector inquiry
Further information on the sector inquiry and the full report of the study are available at: