The stated objective of the European Commission to create a single European energy market continues to be frustrated by the widely divergent nature of EU 25 markets.

These differences manifest themselves in every aspect of the industry, though most notably in terms of competitive intensity. As such, a single European energy market remains a distant possibility rather than an imminent reality.

Only 9 of the gas markets in the EU have per capita demand levels higher than the EU 25 average of 1,039 cubic metres per year. Conversely in the power market there is significantly less divergence away from EU 25 average demand levels.

There has been a discernable increase in the regulatory strength of the Commission in terms of directive compliance and in catalysing liberalisation. Initially taking the form of censuring member states not in full compliance with the terms of the gas and power directives, the focus has now turned towards the actions and dominance of companies.

The degree of diversity, and resultant spread of competitive intensity levels across Europe, is an inevitable consequence of wide-ranging market dynamics, national energy polices and political history. Consequently there is only minimal scope for mitigation of these diversities in order to assist the development of a single European energy market.