Manufacturing the EU Energy Markets: The Current Dynamics of Regulatory Practice

Abstract- This chapter aims to analysis the new dynamics at work in EU energy regulation. Since the publication of the European Commission’s ‘Sector Inquiry Report ’ in January 2007, European energy companies have felt the cold wind of competition law- many for the first time. In addition, national competition authorities (NCAs) have been actively pursuing abusive market practices- sometimes making innovative use of competition law in the process. Certain energy giants have agreed to unbundle their transmission networks- even when their national governments opposed the inclusion of ownership unbundling in the draft ‘Third Package ’ of electricity and gas legislation. In parallel, the Third Package envisages the creation of a new regulatory agency- ACER- to co-ordinate technical cross-border regulatory issues in the internal market. So who will be in the driving seat in the next decade- and will co-ordinated regulatory powers be the preferred approach to market design? Will regulatory rules co-exist alongside competition based controls or will the latter gradually supersede the former? This chapter will examine these critical issues