Economics of European Integration
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Economics of European Integration Case: Deregulation in the European Electricity Market Point of view of the European companies Aggelos Antonkakis Master of European Studies November 2003 TABLE OF CONTENTS EXECUTIVE SUMMARY 2 1. INTRODUCTION IN THE ELECTRICITY CONSUMING COMPANIES 4 2. EUROPEAN COMPANIES OVERALL WELCOME THE DEREGULATION IN THE ELECTRICITY MARKET 5 2.1. Advantages 5 2.2. Disadvantages 8 3. LESSONS FROM THE CALIFORNIA ELECTRICITY CRISIS AND CRUCIAL ELEMENTS IN THE EUROPEAN DEREGULATION POLICY 10 3.1. Lessons from the California crisis 10 3.2. Crucial elements in the European deregulation policy 11 4. DIFFERENCES AND SIMILARITIES BETWEEN DEREGULATION IN THE EUROPEAN ELECTRICITY SECTOR AND OTHER EUROPEAN SECTORS 13 4.1. Similarities 13 4.2. Differences 15 5. AFTER DEREGULATION, TIME FOR PRIVATISATION? 17 BIBLIOGRAPHY 21 Executive Summary European companies are important electricity consumers. Although they are a diversified group of consumers, they all profit from the liberalisation in the European electricity market thanks to the following positive consequences. First of all, the deregulation policy turns the traditionally monopolistic and vertically integrated electricity industry into separated and competitive entities, what generally results in technical innovations...


