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Eu Energy Marker

Essay by   •  September 16, 2012  •  Essay  •  457 Words (2 Pages)  •  1,436 Views

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1. The consumers stand to gain the most from the liberalization process of the EU energy market place. The liberalization process will bring more competition to the market place. This will in turn drive prices down, and make the larger companies become more competitive with their product. We will see a dedication to new alternate types of energy, which will help everyone involved. These larger companies will be forced to spend more time developing alternative energy sources, to keep their prices down, and keep the competitive against the other companies who are developing alternate fuel resource. The big winner in the situation is the consumer, but the business will be given opportunity to grow further, and well beyond their current sizes, if they are allowed to expand throughout the EU.

2. We saw an example of it is to come in the case study with the Italian Enel buying out the Spanish energy firm Endesa. The liberalization of the market will mean, more acquisitions, mergers, between the major energy producers in the EU. This will for a while, be a political nightmare, as lobbyist for the energy firms, will go to work, to make sure the country's largest utility will remain in play. There will be a lot of political discussions. After that is all settled, you will have developed a healthy competitive market amongst 27 different countries.

3. The largest energy firms, especially the ones that are national are going to have a significant advantage over all the other business trying to enter the market. They will control of most the countries grids, and access that will allow them to source all the energy to the entire market. Mostly because for so long, these companies have owned the access to these power grids. It is important to deintegration because the smaller companies will need to have the same access to those grids, as the major company in order to make the market competitive. If you leave the major firms in control, then it will not attract other businesses to enter the market, and the market will never fully reach its potential.

4. Politics is why the process is moving so slowly. Politicians need to protect their homegrown businesses, especially the countries that are made up of smaller companies. These countries want to make sure, that there companies get treated fairly, and have as much chance to succeed as the major firms. This will lead to lots of debate, and lots of money being thrown around to different lobbyist by these major energy firms. With the way the economy is right now, in Europe, the last thing, these countries want to do, is have their businesses laying off workers, because they weren't given the same chance to succeed as the major company.

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