This paper examines the European Commission’s review published November 2012 of progress towards competitive energy markets. It examines four aspects of the markets: Wholesale energy markets; Retail energy markets; Corporate structure; Impact of smart meters on competition. It also reviews the changes proposed to British energy markets in the government’s Energy Bill also published in November 2012. The privatisation of gas in 1986 and electricity in 1990 in Britain formed the model for the Commission’s Energy Directives and any changes to the British model brought about by perceived failings of the original model are of relevance to the EU. We mostly focus on electricity in this paper although the arguments concerning gas are usually similar.
Keywords: Wholesale energy markets, retail energy markets, smart meters
Jel Code: L94, L98, D2, D47