Abstract (may include machine translation)
Since early 2005 there has been a general emphasis on preventing the stalling of the
liberalisation of electricity and gas markets. Examined in this chapter are the perspective
of market participants who identified key obstacles preventing greater cooperation and
coordination in the Central and Eastern Europe’s electricity market.
The main objective of the interview and questionnaire portion of the C3EM study was to have a
cross-section of industry experts express their own opinions on the market and by identifying
top market barriers. The outcome has been the identification of three regional barriers which
are preventing greater levels of competition and efficient market coordination. These are: (1)
lack of cross-border capacity, (2) the need for common rules and regulation, and (3) a need
for greater political support for regional action.
The justification of this study was verified by some of the questionnaire responses. For example,
the regional perspective offered by respondents in Central and Eastern Europe, indicates that
competition is not being fully realized. As Figure 1 shows a majority of questionnaire respondents
still feel that their country’s electricity system is more monopolistic than competitive with fully
competitive markets being in short supply. However, there is a true desire for a competitive
wholesale market in Central and Eastern Europe (Figure 2), and as discussed below, regional
and domestic action are perceived to hold the possibility for a more efficient marketplace.
The opinions of participants indicate that if there were fewer barriers in the region the price of
electricity would equalize, as Figure 3 indicates. Thus while there is a desire for competition in
national markets and regionally, there also appears an equalization of price regionally. However,
as discussed below, interviewees and questionnaire respondents see further benefits to be
had in reducing barriers between national markets, such as greater transparency and benefits
for end-users
liberalisation of electricity and gas markets. Examined in this chapter are the perspective
of market participants who identified key obstacles preventing greater cooperation and
coordination in the Central and Eastern Europe’s electricity market.
The main objective of the interview and questionnaire portion of the C3EM study was to have a
cross-section of industry experts express their own opinions on the market and by identifying
top market barriers. The outcome has been the identification of three regional barriers which
are preventing greater levels of competition and efficient market coordination. These are: (1)
lack of cross-border capacity, (2) the need for common rules and regulation, and (3) a need
for greater political support for regional action.
The justification of this study was verified by some of the questionnaire responses. For example,
the regional perspective offered by respondents in Central and Eastern Europe, indicates that
competition is not being fully realized. As Figure 1 shows a majority of questionnaire respondents
still feel that their country’s electricity system is more monopolistic than competitive with fully
competitive markets being in short supply. However, there is a true desire for a competitive
wholesale market in Central and Eastern Europe (Figure 2), and as discussed below, regional
and domestic action are perceived to hold the possibility for a more efficient marketplace.
The opinions of participants indicate that if there were fewer barriers in the region the price of
electricity would equalize, as Figure 3 indicates. Thus while there is a desire for competition in
national markets and regionally, there also appears an equalization of price regionally. However,
as discussed below, interviewees and questionnaire respondents see further benefits to be
had in reducing barriers between national markets, such as greater transparency and benefits
for end-users
| Original language | English |
|---|---|
| Title of host publication | Towards More Integration of Central and Eastern European Electricity Markets |
| Subtitle of host publication | Book of the Central and Eastern European energy market (C3EM) project] |
| Editors | Michael LaBelle, Peter Kaderjak |
| Publisher | Corvinus Univ. of Budapest, Regional Centre for Energy Policy Research |
| Chapter | 5 |
| Pages | 161-183 |
| State | Published - 2006 |
| Externally published | Yes |