The European Commission (EC) has released the fifth annual report on the evaluation of the performance of network industries that supply services of general economic interest. Published by the Commission on 13 July 2007, the report, relating to 2006, covers telecommunications, postal services, electricity, gas, air, road and rail transport.
According to the EC the performance of these industries has improved and consumers are generally satisfied. The opening up of network industries to competition has benefited users, putting pressure on service providers to keep their costs and prices down. However the report stresses that there are great variations between sectors and between Member States. The delays in opening up markets and in removing legal and technical barriers to the entry of new operators in some Member Sates has held back the performance of some sectors, with only slow development in competition recorded in the postal services, rail transport and energy sectors.
It was also pointed out that regulatory changes have put the conditions in place for more competitive markets to emerge, with the offer of new services and better products, highlighting the roll-out of broadband access in the telecommunications sector. The productivity of network industries has grown faster than in the rest of the economy, prices have been kept in check or fallen (in the case of telecommunications, by around 40 per cent in real terms over the last ten years), and the quality and accessibility of the services provided has remained stable.
While most consumers say that they are satisfied with the services offered and consider their interests to be well protected, the EC points out that there is still some reluctance or inertia among consumers when it comes to moving to new operators. This could be related to the costs of switching or to difficulty in comparing the different offers.
It was emphasised that the electronic communications sector is the success story of the liberalisation process, although it is also noted that there is room for further improvement, not only through better coordination between regulators, but also through strengthening the regulatory framework, in particular in respect of the management of the spectrum of radio frequencies.
Consult:
- Evaluation of the Performance of Network Industries Providing Services of General Economic Interest 2006 Report, European Commission, July 2007 https://www.anacom.pt/render.jsp?contentId=518627
Further information:
- Nota de imprensa da UE: Consumers benefitas market opening leads to better performing network industries http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1090&format=HTML&aged=0&language=EN&guiLanguage=en
