Det danske liberaliserede elmarked: Analyse af struktur og markedsadfærd

Jacob Palm

Student thesis: Master thesis


This analysis concerns the development in the Danish retail electricity market, in relation to the European energy market. The liberalization of the previously monopolized retail and production markets in the Danish energy sector has led to some significant change to the legal environment. This analysis considers the impact on the competition structure of the Danish retail electricity market from the European energy directives. Special, focus is on the criticized ‘obligation to supply’ system and its distortion of the competition. The market structure along with the development of the Danish ‘obligation to supply’ rules, has resulted in a divided retail market, in which the incumbent electricity suppliers have a dominant market position verging on a monopoly status. A change to the ‘obligation to supply’ system in 2012 included a transfer of the incumbent suppliers’ consumers from a regulated to an open market. This transfer of consumers and the divided market structure are elements that can distort the competition. The effects resulting from the Danish implementation of European energy directives have not reached the desired aims of the directives. New electricity suppliers find themselves in a retail market that is lacking the required incentive structure, to accommodate an efficient and equal competition. A fact that could be conflicting with the competition rules in the Treaty on the functioning of European Union The consequence of regulation and current market structure is the basis of this analysis that focuses on the regulation and inefficient market behavior of the market participants. Consideration as to which extent the ‘obligation to supply’ system is responsible for the lacking competition and high inertia of the consumers, and the level of required regulation on the suppliers has caused a lacking incentive for consumers to actively seek out offers on the retail electricity market. Finally, a consideration as to whether the effects of expected measures from the Danish legislators will solve the problems found in the previous economic and legal analysis. These expected measures along with some recommended suggestions will form the conclusion as to whether the competition in the retail electricity will improve and support the concerns from the European and Danish authorities. On this basis, a personal recommendation as to which measures to prioritize to strengthen the competition will be presented

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2015
Number of pages106