Antitrust - Case 22
Study on European electricity wholesale markets. This study analyses the geographic integration of electricity wholesale markets with a focus on Germany and its neighbouring countries. We employ various indicators based on publically available data and find that electricity markets have become more integrated since the sector inquiry undertaken by the European Commission in the years preceding 2006. However, European markets are not yet fully integrated. The results also suggest that stronger (and costly) integration towards certain countries may have only little or adverse effects on electricity wholesale prices in Germany. Finally, in the past, German electricity wholesale prices have appeared too low so as to trigger investments into new generation capacity. To that end, prices do not appear inflated.