Interconnectors, internal, market, efficiency. How to ensure fair cross-border trade of energy? (PDF)

Master's Thesis from the year 2015 in the subject Law - Civil / Private, Trade, Anti Trust Law, Business Law, grade: 13/20, College of Europe, course: Droit des industries des réseaux (Recht der Netzindustrien), language: English, abstract: The core objective of this paper is to analyse the relevance of cross-border transmission lines for competition and the achievement of a single energy market, with particular focus on the electricity sector. It aims to discuss future options for enhancing competition and achieving a real European energy market.

A common energy market even closer Union characterized by the abolition of any barriers to the four fundamental freedoms. A main barrier for creating an integrated energy market is the lack of electricity interconnections and pipelines between different Member States, between neighbouring regions and regional markets. Insufficient investment and the lack of coordination are the challenge on the path towards interconnected energy markets. Consequently, the security of energy supply of certain Member States is redoubtable.

Moreover, the existence of historical monopolies and oligopolies on the majority of national energy market and the presence of vertically integrated companies are further burdens for both market integration and competition. Indeed, competition in the energy markets is stagnating. To intensify cross-border competition, the EU advocates the extensions of cross-border transmission lines and the development of new infrastructures. Although interconnections enhance competition and are a condition sine qua non for a further energetic integration, they do not always increase energy efficiency.