a result of backward integration the monopolist companies would lose their shine and would have to produce cost efficient products hence each producer would focus on its core activity the quality and pricing of services provided to the end users. More jobs would be created, as the 3 verticals of an existing company would be disintegrated into 3 different companies.
At the same time big energy groups would acquire the permit to overtake smaller firms. (E.g. Enel and Endessa). There would be numerous acquisitions and mergers that will take place, every government will take various measures by imposing stringent regulations in order to protect the national firms from being taken over by the competitors. Larger and powerful firms would acquire small local country firms.
The entire market dynamics would change post liberalization. As the markets would open the companies would have to gear up for the competition receivable from other players from other countries. Such companies would have to reengineer their business process to make it more robust so as to accommodate low cost revenue generation activities. Competition would change the tradition of running business in EU post liberalization in the region. Adaption to new methods would be the key to survival.
Role of De-integration in liberalization of the EU energy market 一体化在欧盟能源市场自由化中的作用
De-integration of large international company is essential as integrated supply chain makes it impossible for new companies to enter at the middle stage and reduces incentives to trade on an whole sale market thus reducing liquidity in the market and is seen as a barrier, another important fact it unavailable and inefficient cross border transmission capacity is a barrier to national integration together with lack of transparency, weak network and reliability of information therefore it is essential for all these three departments to split their functions into generation, transmission and selling and separate the business of selling and producing energy this would enable independent power marketing companies to buy energy from the cheapest sources and offer to the end users hence induce competition in the market as this would permit new entrants into the market , it is clear as to why large German companies were resilient to disintegration as their structure was highly integrated and loss of monopoly was feared , but it has been essential to change the market into an oligopolistic market through emergence of innovative small firms , development in RnD , complexity in competition , low cost of operations , global accessibility developing intra -organizational structures .
Prevailing market scenario and reasons for slow progress 当前市场的情况和进展缓慢的原因
The EU energy market liberalization has been a story looking for a happy ending since 1990's. To reap the benefits of the energy market, many directives have been introduced and all of them left some space for more improvisations every time. These unstable policy development is a time contributing factor and the acceptance of such directives/polices has also been a considerable factor, E.g.: The national energy ministers retaliated the European commission, which is the highest competition body of the EU and raised their doubts about the benefits thereby delaying the de-integration of the national power companies. The disturbed political scenario of few countries helped, E.g.: When France and Germany opposed the idea of de-integration of the national energy companies. Technology to create a system /utilities that can serve cros
