Electricity and the Single European Market

The principal features of the electricity sector in the 12 EEC nations are described, followed by an analysis of likely development within the framework of the Single European Act, which would create a single market. An assessment of electricity supply industry structure, organization, and institutional structure reveals major differences among the 12 systems. The possible consequences of the introduction of a single energy market in 1993 are illustrated using four scenarios. The most likely scenario is a progressive convergence of national industries with a limited increase in competition, the latter operating by way of improved information flows and price comparisons.