Report on progress in creating the internal gas and electricity market.

Abstract

Europe is currently seeking means to re-launch its economic performance to achieve a higher level of growth and competitiveness. A reliable electricity and gas service at acceptable prices is the key to this and businesses and households should be able to benefit from efficient energy supply. This is a key element of Europe’s Lisbon strategy. To achieve this objective, the EU decided to bring the energy sector into line with the competitive parts of its economy by gradually introducing competition. On the basis of the second Electricity and Gas Directives1 the EU now has the unique opportunity to create the largest integrated competitive electricity and gas market in the world. The EU cannot afford to miss the opportunity of making this market a success. This has been recently underlined by the European Council at the Hampton Court Summit. It is now one year since the new directives should have been implemented by Member States and there are one and a half years to go before markets will be fully open to competition. This report takes stock of the current situation and identifies areas requiring further improvements.