Electricity and the Single European Market

  • Luigi De Paoli


A description of the principal features of the electricity industries in the 12 EEC countries is followed by an examination of their likely development within the framework of the Single European Act. An analysis of their structure, organization and institutional framework reveals profound differences among the 12 systems. Given the distortions created by the influence of public authorities on industry decisions, one can understand the difficulties involved in opening up to competition an industry accustomed to working on a national basis. The possible consequences of the introduction of a single energy market, envisioned for the beginningof1993, are illustrated using four scenarios. It is proposed that the most likely scenario is a progressive convergence of national industries with a limited increase in competition, the latter operating by way of improved information flows and price comparisons.