Chapter IX - Strategic Development and Regulatory Challenges in West-European Electricity Markets

Abstract

This chapter explains some comparative observations and reflections on the similarities and differences in the national business strategies and industrial configurations in the West-European electricity markets. The development in European electricity markets has implied a redefinition of the role of the State and the market and a shift from a public-service orientation toward competitive behavior—which also includes mergers and acquisitions and international strategic positioning. The market players are companies with varying mixes of public and private ownership, with various financial constraints and different combinations of political and commercial mandates. The complex semi-competitive environment that emerges from the subsidiary-oriented European deregulation creates a very special context for strategic configuration. Because the emerging business strategies also have implications for governance and public welfare, the chapter concludes with a few remarks on regulatory challenges facing the West European commercial regimes, including environmental issues.