Electricity regulation in Europe

The introduction of market elements into monopolistic network industries has progressively gained political attention during the past two decades. Antitrust and liberalization reforms have initiated a wide discussion about the industrial organization of these network industries. This chapter analyzes and compares the electricity regulatory frameworks of the European countries. It discusses the European liberalization framework and presents two specific cases of Norway and England & Wales that anticipated the European Union (EU) reforms by several years. Based on this understanding, the chapter examines the influence of EU reforms on non-Member States. It also compares regulatory frameworks, regulatory institutions, and regulation games. The chapter identifies the factors that explain the national cases' position within the European context. The possible evolutions of the near future and the critical factors that appear to drive the design of regulatory frameworks in the electricity sector are summarized in the chapter.