Economic Characteristics of the EU Electricity Sector

In early 90´s all transition countries started with economic reforms in infrastructure services, changed the centralized organization of monopolistic infrastructure utilities and introduced marketoriented structures and public regulation. Electricity sector is specific because of its high macroeconomic significance that arises from its substantial contribution to GDP, which directly employs important amounts of capital, labor and other resources, and indirectly impacts the efficiency and competitiveness of most firms and economy as a whole through the quality and price of the electricity. Before whole reform process started, economies in EU were dealing with monopolies and natural monopolies.