Introduction
The liberalization of the energy market has introduced profound changes both to the structure and efficiency of energy supply, bringing the underpinnings of a competitive market with it. At the same time, while open to the benefits of competition in some parts of the supply chain, the new energy market has become more prone to shock in relation to price fluctuations, its structure and assurance of demand. The 2021-2023 energy crisis has demonstrated the risks of a liberalized energy market in emergency circumstances, where as a result of unprecedentedly high energy prices, substantial number of energy suppliers became insolvent and were unable to supply the market sufficiently. In response to the crisis fall-out, the Commission proposed several structural tools to reduce risk of default among energy suppliers.
The aim of this blogpost is to highlight the potential role of existing EU insolvency and restructuring laws in mitigating energy supplier default and to explore whether their omission within the current regulatory policy is a missed opportunity for more effective enforcement.
Continue reading “Enforcement of insolvency and restructuring laws: a key to a competitive energy market?”