Retail Energy Markets Under Stress. Lessons learnt for the future of market design

Summary:

The rise in the cost of energy across Europe has put energy markets under considerable stress. In this context, the publication focuses on key issues related to retail markets. It aims to address and provide some initial answers to the following questions:

• How well have European retail electricity markets been coping with the current energy crisis? How have governments responded to increasing prices?
• What short-term measures can governments take to soften the impact of high energy prices?
• What long-term measures can governments take to protect consumers from high energy prices?
• What should be the role of the EU vs. the Member States? What legal constraints are imposed by EU directives and regulations?
• Do we need to regulate the risk exposure of suppliers? What are the options for doing this?

The authors provide a brief discussion on energy retailing, before presenting four country experiences: France, Norway, the Netherlands and Great Britain. Based on these experiences, the paper subsequently attempts to draw lessons and identify challenges and opportunities for retail markets going forward.

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