The Extent Of European Power Markets

Author : VaasaETT Ltd Ab Oy
Publisher :
ISBN 13 : 9789276302698
Total Pages : pages
Book Rating : 4.3/5 (26 download)

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Download or read book European Barriers in Retail Energy Markets written by VaasaETT Ltd Ab Oy and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: European retail energy market liberalization is now well into its third decade in the most mature markets. Customers of electricity and gas are now free to choose their electricity and gas suppliers in nearly all markets across the EU and in a number of other European markets. In theory at least, the European retail energy market is a place where new suppliers and providers of retail services can enter the market and compete relatively freely and on equal terms for customers in the market; a place where formerly incumbent electricity suppliers can compete for gas customers and where gas suppliers can compete for electricity customers; a place where a supplier from one region or jurisdiction can compete in another, without facing unreasonable or excessive barriers; a place where a capacity aggregator or other innovative business model can compete to provide its services to retail energy customers. The European Barriers in Retail Energy Markets project was established to research the extent to which the theory is the case in practice; the extent to which energy suppliers across Europe face a variety of barriers to enter and compete in the market; to identify which barriers exist and to provide some suggested solutions to those barriers. The project thereby aims to support the European Commission and Member States in developing policy and implementing actions to reduce barriers. The project focuses on electricity and (in most cases) gas markets in 30 European countries, namely the EU27 states plus Great Britain, Norway and Switzerland. It was conducted over the course of more than a year with the cooperation and assistance of nearly all of the relevant national regulatory authorities (the report does not however claim to represent their views and its findings have not been officially endorsed by them), nearly 150 suppliers and many other stakeholder organizations, across all focus markets. Great Britain was included in the project and cooperation was received from numerous suppliers, the regulator (OFGEM) and other stakeholders. Switzerland and Malta were included to a lesser extent since they are not yet open markets for household customers. The project focuses on retail (supply), including also demand aggregation services, other additional offerings and new model retail, especially relating to the household segment customers (in some markets households and smaller SMEs may be difficult to distinguish). Many sources of information were used as part of the project, including an extensive literature review; interviews with national regulatory authorities (NRAs); feedback from market participants (suppliers and other competitors) through questionnaires, interviews, webinars and a major workshop; and extensive data gathering. Whenever possible, information from market participants was verified through further research. The deliverables of the project are extensive: in addition to this Final Report, the project has produced 28 Country Handbooks (separate reports) as well as a stand-alone Barriers Index methodology/tool and a European Barriers Index Ranking (separate report). Additionally, as part of the process collaborative and dissemination channels were used extensively, including a stakeholder website (with 300 subscribers) and associated subscribed communications, two webinars (one with regulators and one with competitors, each with approximately 40 participants), a Stakeholder workshop with approximately 70 participants at the European Commission and a large number of face-to-face meetings with individuals and groups of stakeholders. The extensive findings of the project indicate that while barriers are being reduced, and while retail energy markets are heading in the right direction, many serious barriers remain and need to be addressed if potential environment and social benefits from European retail energy markets are to be realized. Many such barriers are very specific to individual markets, but many are pan-European and would therefore benefit from Europe-wide policy to mitigate them. The Barriers Index produced for the project, in combination with the other insight from the project, additionally provides a clear view on best-practice as well as a tool to map the evolving status of barriers across Europe in the years to come.