Progress in creating the internal gas and electricity market. Report from the Commission to the Council and the European Parliament.

Abstract

The relevance of energy to Europe's growth and competitiveness is steadily increasing. Reliable energy services at acceptable prices for both industrial and household users continue to be a key factor in social and economic development. A well-functioning internal energy market is essential if all three of Europe’s energy challenges of competitiveness, sustainability and security of supply are to be met. The last step on the road to competitive energy markets was achieved on1 July 2007 with the full opening of national retail markets. From a legal perspective, all European consumers are now able to choose their supplier and benefit from competition. However, this report shows that, in practice, market integration is still far from a success. With very few exceptions, electricity and gas markets in the EU remain national in economic scope with limited competition. This report highlights that the problems identified in the Commission’s 2006/07 Progress Report and Sectoral Inquiry Report on the European electricity and gas markets to a large extent still remain. Not all the shortcomings can be solved within existing legislation: improved legislative measures are needed.