ABSTRACT
The European Union (EU) has from its very beginnings pursued the integration of energy markets. In this chapter, the author describes the regime it has created. It is a complicated one, because it needs to take account of the different ways in which all member states intervene in the energy markets and in the structure of the energy sector. The energy sector is dependent on very heavy infrastructure and its production, distribution and consumption have important external effects for instance on the environment and social equity. It is composed of primary energy production and by secondary energy production and distribution. The author describes the changes which in the past half century occurred in European energy markets. He aims to treat the integration of certain markets in more depth; oil and electricity have been chosen as examples. In both case studies the author describes the EU regime, the development of the branch and the strategic responses of the major firms.
