Internal Market

Benefiting from a unified European gas market

A well-functioning market is the best means to protect all customers. It brings more choice with new, innovative products to fit customers' needs. Eastern European countries are joining this movement.

Highly Interconnected

The European gas market has far superior interconnection than the power market.

Interconnections vs. daily consumption1

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Good physical interconnections between countries are a prerequisite for cross-border trading. Together with the right market design, this is the basis for a well-functioning internal market - benefiting all customers.

The European gas market has far superior interconnection than the power market, making the internal gas market more advanced.

A few selected infrastructure projects are required to “complete the picture”.

High Price Correlation

Gas prices in Northwestern Europe have a high correlation proving the effectiveness of the internal gas market.

Gas: NW Europe price coupling1,2

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Power: NW Europe price coupling1

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Connecting Europe

Spurring the development of markets in Eastern Europe through more interconnections has brought greater correlation to Western European prices, and all the benefits of competition.

Greater flows = greater price correlations

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Central Europe network developments

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Competition brings Value to the Customer

Competition between gas suppliers has increased dramatically since market liberalisation.

Gas suppliers before liberalisation…

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…and after liberalisation

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Affordable Energy

Gas is offering great value to customers.

Household electricity & gas prices1

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Potential for significant savings

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Policy Recommendations

Internal Market

Complete the internal energy market in all Member States.

Coordinate electricity and gas policies for a coherent energy market design.

  • Develop joint solutions for smart grids and other cross-sector issues, such as data management, energy storage, demand-side response etc.
  • Let capacity remuneration mechanisms not distort the internal electricity market and give preference to low-carbon generators in case of equivalent technical and economic parameters.

Wholesale

  • Let companies conduct business across borders on a level playing field.
  • Implement the network codes quickly and develop the code on harmonised transmission tariff structures.
  • Implement financial markets regulation in a way that gas trading and liquid hubs can develop unhindered.

Retail

  • Ensure fair competition for companies to create innovative products and services for customers at competitive prices.
  • Address energy poverty clearly through Member States’ welfare and social policy, focussing on energy efficiency measures and a competitive retail market.