Perspectives on Interfuel Competition in the European Natural Gas Market
Reliance on natural gas in European markets has increased strongly. Further increases, particularly in the power generation sector, are expected. The market structure has become more competitive but is still far removed from the degree of integration and competition prevailing in North America, In Europe, price discrimination remains noticeable. And pipeline access-a key to competitive price formation-is far from open. While open access is a necessary condition for greater competition in European gas markets, it is not sufficient. Other elements would need to be in place as well.
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