Ambitious European Union targets for decarbonising the economy are already shaping the energy sector. Competition policy has to react to this step-change. Authorities must not block this transformation by clinging to out-dated models, but they must also be vigilant not to accept it as an excuse for undue state-intervention. The issue raises manifold questions for competition policymakers. What is the role of state aid (supporting renewables or capacity mechanisms)? How can we define markets for antitrust surveillance and merger control?
We were delighted to welcome Commissioner Vestager for a discussion about the role of European competition policy in the energy market, and especially its potential impact on the transition to a low-carbon energy sector.