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Retail electricity markets in Europe: Taking stock, looking ahead

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  • Defeuilley, Christophe

Abstract

The potential benefits of retail electricity market liberalization have been the subject of intense debate. Taking stock of both the academic work and the current state of retail markets in Europe, this article seeks to assess whether opening competition has led to an increase in consumer welfare. We conclude that the benefits of retail competition remain unclear and controversial while the costs are substantial. In light of these findings and given the growing importance of decarbonization and inequality issues, policy-driven changes should be considered to build stable regulatory frameworks that prioritize consumer protection over unfettered competition.

Suggested Citation

  • Defeuilley, Christophe, 2025. "Retail electricity markets in Europe: Taking stock, looking ahead," Utilities Policy, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:juipol:v:97:y:2025:i:c:s0957178725001808
    DOI: 10.1016/j.jup.2025.102065
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