ZEW Energy Market Barometer - Experts Support Cartel Proceedings of European Commission

The vast majority of the experts questioned for the ZEW Energiemarktbarometer (Energy Market Barometer) support the determined measures of the European Commission to liberalise electricity markets. This applies to the steps taken against EU member states as well as individual companies.

The question "Do you approve of the European Commission's efforts to liberalise the electricity market by means of competition procedures?" was answered with "yes" by 38 per cent and "rather yes" by 29 per cent with regard to companies. Even more experts support the competition procedures against member states: 49 per cent answered with "yes" and another 28 per cent with “rather yes”. These are the findings of the current ZEW Energy Market Barometer by the Centre for European Economic Research (ZEW), Mannheim. The biannual survey is conducted among approximately 200 experts from energy supply companies, energy-trading companies, and energy service providers, who are asked to give their expectations concerning short and medium-term developments on the national and international energy markets.

Contrary to numerous politicians in the EU Member States, the participants of the ZEW Energy Market Barometer prefer a European market organisation in the energy industry. A clear majority of 67 per cent approves of a European supervisory authority for electricity and gas networks. Only 18 per cent are of the opinion that energy policy should remain an internal matter of the member states.

The experts were also asked which reasons might speak in favour of the transfer of responsibilities for energy policy from national to EU level. They were allowed to give multiple answers. Particularly the increased negotiating power over countries with natural resources (44 per cent), the strengthening of the competition among producers within Europe (43 per cent) and the harmonisation of the environmental regulations were named. Another reason for the Europeanisation of energy policy mentioned very frequently is the supervision of the development of a European electricity grid (38 per cent). The experts less frequently referred to the coordination of promoting future-oriented technologies (32 per cent) and the improvement of the security of supply (28 per cent).

In Brussels as early as in February 2006, Competition Commissioner Neelie Kroes presented an enquiry by her Directorate-General  with regard to European electricity and gas markets highlighting a number of shortcomings in connection with the transposition of the commission's liberalisation directives: market concentration in the field of power generation, distortions of competition due to unequal access to electricity and pipeline networks, lack of integration of European markets, and lack of transparency in terms of price formation. Kroes announced that as a consequence the commission would take a hard stance implementing the liberalisation of European energy markets. In this context, she initiated cartel proceedings against 17 Member States. Several individual companies are under investigation for alleged competition infringements.

Contact

Dr. Ulf Moslener, E-mail moslener@zew.de

Dr. Tim Mennel, E-mail mennel@zew.de