Competition in Energy Markets: Law and Regulation in the European Union

Oxford University Press, 2002
ISBN 0-19-825770-8, 478 pages + 58 pages of cases, glossary and preface by Judge David Edward

This new book provides a detailed and practical account of the legislation that comprises the EU Internal Market in electricity and gas. It explains the directives and regulations in detail, as well as the relevant EU case law and decisions by the EU competition authorities. By viewing the Internal Energy Market dynamically as a process rather than statically as a source of rules to be implemented, it follows the progress made towards establishing a competitive energy market for the first time in the EU. The analysis of the origins, aims and implementation of the EU energy directives which Professor Cameron provides is essential to an understanding of the emerging internal market in energy in the EU.

The book comprises three substantial parts. Part I explains the wider context of a global trend towards competition in network-bound energy markets. The uniqueness of the European experience is emphasised (the creation of a single market rather than simply a liberalization process). A detailed overview of the EU legal and institutional framework is provided. In Part II the process of establishing an internal market in electricity and gas is examined in detail, especially the difficulties in creating the consensus that led to the Electricity and Gas `common rules' directives. This context helps to explain the limitations of the Directives that resulted. Part III explains in detail the developments that occurred since 1997-98 including: the establishment of the Florence and Madrid Regulatory Fora; actions taken by the Competition Directorate to address the effects of significant mergers and acquisitions in the energy markets; reciprocity issues; state aids and the widely held view that further legislation was necessary to accelerate the completion of an internal market in electricity and gass. A final chapter examines the 2001 package of legislative changes proposed by the European Commission, and in particular on three issues of lasting importance for EU energy law and policy: the relationship between the National Regulatory Authorities, the Commission and the stakeholders; the security of energy supply and the scope of and limits to `public service obligations' in the electricity and gas industries.

Competition in Energy Markets also takes the wider pan-European context into account, explaining the requirments and the implications of the European Economic Area Agreement, the Energy Charter Treaty and the various arrangements made for accession by the countries of Central and Eastern Europe.

In his preface Judge David Edward of the European Court of Justice says: "There is broad agreement that European energy markets should be liberalized and also that they need some degree of regulation. The question of how this should be achieved raises a problem that is both exceptionally important and exceptionally difficult. This book is probably the first in any language that seeks not only to assess the nature of the problem and the steps that have been taken so far in the European Union to resolve it, but also to point up the positive interaction and potential conflicts between primary and secondary legislation, judicial decisions and political action. This book is a valuable guide to the problems of the energy sector and possible solutions".

(second edition currently in preparation for OUP)