Germany's electrical storm

Article Abstract:

Germany has liberalized its power supply markets and this has led to a drop in prices at both wholesale level, and for domestic consumers. The eight major electric utilities have a large amount of capacity and fear competition from French imports. They are also focusing on core activities and reversing a previous trend toward diversification. Smaller companies could be more seriously affected by liberalization. There could still be a move toward oligopoly unless there is sufficient control by the cartel office.

Energy policy, Deregulation

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Shock treatment

Article Abstract:

Price competition has affected the German electricity industry, and reductions for residential users announced by RWE have been followed by announcements of further reductions. Marketing has become important in the industry, and the rapid pace of change has led to a change in attitude toward mergers, which are more likely to be permitted by the authorities due to the intensity of competition in the market. Smaller utilities are most vulnerable as a result of these changes.

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Power shoppers

Article Abstract:

The policies of Germany utilities, and their acquisition plans, are examined in detail.

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