Report reports slow progress towards deregulated European power

27 March 2003 – A report published Thursday by consultants Cap Gemini Ernst & Young argues that a common European power market is still some way off despite increased regulation on a national level.

The study, called “European Energy Markets Deregulation Observatory,” noted that Electricité de France still controlled 90 per cent of the French domestic market, despite initial efforts to open up the French market. The situation in Belgium was little different with Electrabel, the former state monopoly, holding 92 per cent of market share.

The study pointed to Germany and Great Britain as markets, which were fully liberalized in the power sector. In these countries, even the large companies such as E.ON, RWE and British Energy had no more than 25 per cent market share.

Power trading is currently being used to ensure system reliability and safety. But it is not being used to even out prices between the different European countries, the study said.