ABSTRACT

Energy sectors in many countries worldwide are currently undergoing dynamic and profound changes, related to gradual departure from monopolistic market structures, deregulation, and also privatization. All developed countries’ governments, particularly in the European Union (EU), are restructuring this sector in order to decrease direct, state inuence and introduce competition. Key objectives of the agenda on changes include increased economic efciency in providing electricity and gas and obtaining lower prices for their consumers. Maintaining energy security due to timely and adequate investments in generating capacities also remains at the top of agenda. The very essence of changes in the energy sector is primarily based on functional decomposition of previously vertically integrated technical and technological structures: from generation through transmission to distribution and retailing, that is, unbundling, and on imposing a legal obligation onto owners of transmission or distribution grids to grant access to other market participants (thirdparty access [TPA] rule). Provided that energy generating and retailing are going to be under market regulation, while network collusion-constituting the real infrastructural natural monopoly-will remain in domain of specialized administrative regulation, the reform of the energy sector will take place from monopoly to market through regulation, being a certain substitute to a competitive marketplace. Energy is a fundamental commodity; therefore, its lack poses a threat to every country’s security. Processes related to the energy sector are severely intrusive in terms of natural environment, and realization of the common market idea may only succeed when protection of competition legislation is secured. Hence, governments of member states exerting inuence over energetics are transforming the radical regulation forms, being state ownership, into other forms complying with the notion of split supervision-into regulative and ownership functions.