The European Union (UE) proves to be an efficient exporting actor for the goods and services market. However, its capital account remains negative in the energy market. UE's growing dependency on gas and electricity suppliers is becoming an economic and strategic weakness for the business environment. The Union's institutions have established an agenda to stabilize the issue. The European Commission traditionally supports a greater competition the energy market. The aim is to create a mechanism to unite the market.
But the ambitious ideas face an unavoidable disruption caused by the European economy – the resistance by its member states. The question is to which extent is the Commission's action in the field of energy following or reshaping the evolution of a vital market?
The Commission's agenda clearly reveals its commitment towards market integration even though its mergers seem to destabilize the states that tend to defend their national interests. The European institution de facto adapts its action to the realities of both the business trends and influenced by the states.
[...] The Commission fosters competition to promote the consumers' interests and the efficiency of the market to offer better prices. A first step was taken in 2004 - a directive[3] was created to protect consumers' rights. It helped private and public service companies to choose their suppliers freely. In the second phase of liberalization process included domestic consumers. Operators could now offer free services to all citizens of the EU, irrespective of their country of origin. The decision induces a re-shaping of the market through the regulation. [...]
[...] How the Commission faces the current concentration of the energy market The resistance of national logics can be illustrated by referring to the two issues observed above: competition and integration. Both cases reflect how the Commission proceeds in its day-to-day dealing with the realities of the market. What is the extent of the Commission's effective power of control and legislation on the energy market? In terms of competition, the Commission plays the part of a referee that observes the regularity of the game between the participants. [...]
[...] One may wonder why the Commission and European authorities are affected by the interests of two member states and a few companies. This is due to the particular decision-making process of the Commission. At first glance, the organization was regarded as a government. The Commission considers the public good. Through the defense of the consumer, it plans to get the best supply of energy, which is a vital resource of our societies. Thus the unbundling measure could appear as a pro-consumer decision (even if the access of new operators would firstly raise the prices before reducing them). [...]
[...] Their current strategies of concentration destabilize the European energy organization.[4] Facing these activities, the Commission is conscious that the control of competition represents only a part of a larger strategy. That is why the Action Plan creates a set of obligations and constraints. Apart from it being traditionally controlled by mergers, the Commission possesses the legislative power to produce rules that push towards the integration of energetic activities. Its aim is to create a single European electricity and gas market, and thus encourages cross-border investments and mergers. [...]
[...] The Commission may act as a pedagogue to show the member states that European integration would enable to stand united in the context of rising tensions in the field of energy. The Commission would then promote the ideal that common good can be reached through cooperation in the field of energy, as the founding had perceived in 1951. Today, the same ideal would enable Europe to impose itself as both an economic and diplomatic power. Bibliography •Articles - “Enel et E.ON bousculent l'Europe de l'énergie”, P BOCEV, D. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee