Chapter 11

Liberalisation of the European Natural Gas Market: Myth or Reality? Evidence from Greece

Irene Fafaliou and Michael L. Polemis

Abstract

During the last decade the liberalisation of the European Union (EU) natural gas market has been acknowledged as a fundamental priority adopted by officials to promote economic growth and enhance the level of competition in the region. Although significant progress has been made, competition is slow as the natural gas industry remains highly concentrated, with relatively little cross-border trade activity. The aim of this chapter is to assess the liberalization process of the EU natural gas industry and determine the extent to which it has impacted less liberalized countries such as Greece. In order to attain this object, we study the case of the Greek natural gas market by employing Porter’s competitive model of five forces. Our analysis indicates that although the liberalisation of the Greek natural gas market has been set as a priority in the regulators’ agenda, the level of effective competition in the market still lacks behind.

Total Pages: 168-183 (16)

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