The Effects of the Energy Liberalization Process in the European Union: An Evaluation of the EU Energy Policy and Legislation towards Environmental Protection and Consumer Welfare. Literature review

Abstract

This paper is a literature review, which explores the liberalization of the EU energy market, with a focus on its impact on consumer welfare, environmental protection, and the role of the Court of Justice of the European Union (hereinafter CJEU) in shaping energy policy. The study examines the historical evolution of energy liberalization, including the significant legal frameworks and policies that have shaped the EU’s energy sector. The analysis reveals the complex interplay between market liberalization, environmental sustainability, and competition, highlighting the challenges of balancing these competing objectives. The impact of some CJEU rulings, particularly in the context of competition law and state aid, is explored to illustrate how EU institutions have navigated tensions between cost reduction, market efficiency, and environmental protection. Furthermore, the paper discusses enforcement and compliance issues, noting that while EU competition policy has contributed to market development, there remain significant challenges in ensuring consistent application of environmental standards. The conclusion reflects on the ongoing difficulty of achieving an optimal balance between consumer benefits and environmental goals in an increasingly complex geopolitical and regulatory landscape.