The influence of market liberalisation on the electrical energy prices

Abstract

The liberalization of the electrical energy production sector and the 
introduction of competition in the market has led to significant changes in energy
sectors worldwide in last 20 years. A significant importance for the energy sector is
the reform processes, the operational mechanisms and manner in which market
prices are determined. A particular emphasis has to be made of the analysis of the
relationship between price ranges and the level of competition (openness) in
particular electrical energy markets in EU countries. It is also necessary to consider
which benefits are brought on by the process of liberalisation for the market
participants, and in particular for the consumers. In an open competition market
customers have possibility to choose their electrical energy provider, and prices are
determined through market mechanisms that influence the prices to be set in realistic
terms.