Energy markets are those commodities markets that deal specifically with the trade and supply of energy. Energy market may refer to an electricity market, but can also refer to other sources of energy. Typically energy development is the result of a government creating an energy policy that encourages the development of an energy industry in a competitive manner.
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Energy markets have been liberalized in some countries.
They are regulated by authorities, including liberalized markets, to protect consumer rights and avoid oligopolies.
Regulators includes the Australian Energy Market Commission in Australia, the Energy Market Authority in Singapore, the Energy Community in Europe, replacing the South-East Europe Regional Energy Market and the Nordic energy market for Nordic countries. Members of the European Union are required to liberalise their energy markets.
Regulators seek to discourage volatility of prices, reform markets if needed and search for evidence of anti-competitive behaviour such as trying the formation of a monopoly.
Due to the oil price increases since 2003 and speculation, energy markets are being reviewed and by 2008 several conferences were organised to address the energy market sentiments of petroleum importing nations.[1] In Russia the markets are being reformed by the introduction of harmonized and all-Russian consumer prices.[2]
A recent example of the failure of government to regulate a market and provide oversight enabled Enron to manipulate the energy markets in the United States.
During 2008 in the United States the Commodity Futures Trading Commission is conducting an investigation of energy market conditions.