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.
Cite this document
(“Development of European energy market Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/politics/295905-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”, n.d. https://studentshare.net/politics/295905-european-energy-market.
Cited: 0 times
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…
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 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 the cyclical imbalances and uncertainty and also low interest rates which helps in the encouragement of investments.
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.
Through time, much progress has been realized in the EU given the creation of a single market and the adoption of a single currency across the region. Further, there has been a coordinated conduct of the member counties on international trade negotiations and a sense of a common monetary policy in the region.
10). This was aimed at increasing and providing sustainable jobs and to enhance the economic growth within the member states, provide for one currency between the member states and free movement of citizens within the member states. Even though this program has been successful in achieving effectiveness, it still faces some setbacks since it is inevitable for such a program to experience problems in its definition and its implementation (Pohl & Sorsa, 1992, pp.
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 and employment in the European countries as contrasted to the US or Canada and the trend has taken of prima-facie evidence of declines in hiring and firing as regard the mobility of the work force.
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 intermediaries like banks (Collins, 1992) do.
POOLING OF FUNDS.
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 market try to innovate and introduce new features in their respective models rather than reducing the prices to attract buyers.
They are said to have sales of 52.9 billion euros in the year 2007. The growth of telecom companies is contributed mainly to the fundamental change in the structure of the telecommunication industry. This industry shifted its focus from being a monopolist to an industry that started encouraging the competition.
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
6 pages (1500 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Essay on topic Development of European energy market for FREE!