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Misreading liberalisation and privatisation: The case of the US energy utilities in Europe

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  • Haar, Laura N.
  • Jones, Trefor

Abstract

In response to energy market liberalisation and privatisation initiatives promoted by the EU and other European states in the 1990s, a large number of US energy utilities expanded their activities in Europe, mainly through acquisitions. The size of their investment was, a decade later, matched by the ensuing scale of their retreat, wealth destruction and often forced exit. Combining interviews, industry studies, published financial data and company reports, this article examines critically their strategy and, in light of widespread failures, seeks to answer the question of what went wrong. It is argued that mistakes might have been avoided through greater appreciation of how market liberalisation evolves given changing government priorities and general sovereign risk.

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  • Haar, Laura N. & Jones, Trefor, 2008. "Misreading liberalisation and privatisation: The case of the US energy utilities in Europe," Energy Policy, Elsevier, vol. 36(7), pages 2610-2619, July.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:7:p:2610-2619
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    1. Joseph Wilde-Ramsing, 2017. "Quality Kilowatts: A Normative-Empirical Framework for Assessing TNC Performance on Sustainable Electricity Provision in Developing Countries," Progress in Development Studies, , vol. 17(2), pages 131-147, April.
    2. Högselius, Per, 2009. "The internationalization of the European electricity industry: The case of Vattenfall," Utilities Policy, Elsevier, vol. 17(3-4), pages 258-266, September.
    3. Lourdes Torres & Patricia Bachiller, 2013. "Efficiency of telecommunications companies in European countries," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 863-886, November.
    4. Clifton, Judith & Díaz-Fuentes, Daniel & Revuelta, Julio, 2009. "Explaining Telecoms and Electricity Internationalization in the European Union: A Political Economy Perspective," MPRA Paper 33037, University Library of Munich, Germany.
    5. Judith Clifton & Francisco Com�n & Daniel D�az-Fuentes, 2011. "From national monopoly to multinational corporation: How regulation shaped the road towards telecommunications internationalisation," Business History, Taylor & Francis Journals, vol. 53(5), pages 761-781, August.
    6. Haar, Laura N. & Marinescu, Nicolae, 2011. "Energy policy and European utilities' strategy: Lessons from the liberalisation and privatisation of the energy sector in Romania," Energy Policy, Elsevier, vol. 39(5), pages 2245-2255, May.
    7. Haar, Lawrence, 2021. "The competitive disadvantages facing British assetless electricity retailers," Energy Policy, Elsevier, vol. 155(C).

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