A number of
regulatory challenges exist in the design of policy
frameworks that apply to both primary and secondary
energy sectors. One of the most important is how
to increase the scope for and effectiveness of
competition in sectors where monopolies either
already exist or are prone to emerge. Another
is the desirability of incorporating environmental
considerations into the overall market framework
in which energy industries operate.
major efforts are underway to liberalize gas and
electricity markets. These should be complete
by 2007. Obstacles to be overcome relate to, among
other things, issues of access to networks, tarification
issues and different degrees of market opening
in EU Member states. The way the regulatory system
deals with these will strongly influence, among
other EU objectives, the degree to which efforts
to combat climate change are advanced by increased
use of renewable energy sources for power generation
to reduce greenhouse gas emissions. GEM is currently
exploring these issues in the French context with
a view to analyzing the reasons for the low penetration
of wind energy in the French electricity market.
markets are characterised by important barriers
to entry, making them an area of concern for authorities
charged with fostering competitive markets. In
spite of extensive technological and structural
changes in the telecoms industry over the last
few years, monopoly powers have not disappeared.
Liberalisation - the opening of formerly state
dominated markets to new competitors – has created
a need for independent regulatory authorities
to foster competition and guard against dominance.
Yet regulators must also strive to diminish the
negative impacts of their policy interventions
and to foster accountability.