Market Monitor: Development of the Wholesale Electricity Market in 2006

Competition in the Dutch electricity market is stagnating. The market remains concentrated, with relatively high prices. The north-west European market must be further integrated by expanding the available interconnection capacity in order to achieve a structural improvement. That could cut consumers’ annual energy bills by several dozen euros per household. Consumers would also benefit indirectly since electricity prices for business would also fall, putting downward pressure on prices of other products. In order to achieve these benefits for consumers, the TSO’s must make headway with the expansion of the available interconnection capacity.