Building competitive energy markets

Competitive and transparent energy markets are essential to economic growth and social wellbeing. Well-functioning markets ensure efficient energy delivery and strong incentives for innovation and investment. This requires regulatory frameworks that facilitate market entry, ensure fair access to infrastructure, and foster competition across the energy value chain. While many countries have implemented liberalisation reforms to achieve these goals, the OECD Product Market Regulation (PMR) database for the energy sector indicates that important regulatory tools, such as mechanisms for consumer engagement to reduce switching costs, and the technical and digital infrastructure to support retail price liberalisation, are not yet widely adopted. It is therefore important to complete the regulatory reform necessary to ensure the development of effective competition in energy markets to ensure better outcomes for consumers and the broader energy system.