The Scissors Effect
How structural trends and government intervention are damaging the major European electricity companies and affecting consumers
The major electricity companies (the ‘majors’) in Europe have not recovered from a significant decline in their combined market value that began in early 2008. If the causes are structural, as argued here, these companies may be unable or unwilling to finance the investments required to meet the EU policy goals of energy security, environmental sustainability, and acceptable costs.
This research paper by David Robinson argues that the problems facing the European majors reflect a ‘scissors effect’, which has two interpretations. ….