Title page 1

Contents 6

Abstract/Résumé 5

1. Introduction 8

2. Why foster competition in the electricity and natural gas sectors? 11

3. The structure and characteristics of the electricity and natural gas sectors 15

3.1. Electricity sector: overview of the extent to which the sector has been opened to competition 18

3.2. Natural gas sector: an overview of the extent to which the sector has been opened to competition 20

4. Competition in energy retail markets 22

4.1. Electricity 22

4.1.1. Choice of providers and retail price regulation 22

4.1.2. Access to information for consumers 26

4.2. Natural gas 27

5. New regulatory developments related to green technologies 29

5.1. Regulatory tools in the electricity sector 30

5.2. Regulatory tools in the natural gas sector 33

6. PMR reforms undertaken between the last two editions of the indicators 34

6.1. Reforms in the electricity sector captured by the latest PMR indicators 34

6.2/6.1. Reforms in the natural gas sector captured by the latest PMR indicators 35

7. Conclusions 37

References 38

Appendix 1: Detailed tables 46

Annex A. The methodology to build PMR Energy indicator 55

The PMR Energy indicator 55

Electricity 56

Natural Gas 60

Table 1. Legal restrictions on the number of operators across the electricity supply chain 18

Table 2. Electricity: Legal requirements for vertical separation of transmission and distribution from generation and retail supply 19

Table 3. Legal restrictions on the number of operators across the natural gas supply chain 21

Table 4. Natural gas: Legal requirements for vertical separation of transmission and distribution from generation and retail supply 22

Table 5. Categories of consumers allowed to choose their electricity retail supplier 23

Table 6. Regulation of electricity retail prices where competition has been introduced 23

Table 7. Estimated smart metering penetration rates 26

Table 8. Information available to retail consumers in the electricity market 27

Table 9. Categories of consumers allowed to choose their natural gas retail supplier 27

Table 10. Natural gas retail price regulation 28

Table 11. Information on prices available to residential and small commercial consumers in the natural gas market 28

Table 12. Demand response schemes in the surveyed countries 31

Table 13. Regulation of hydrogen blending in the surveyed countries 33

Figure 1. The PMR Sector Indicator for Energy: results for 2023-2025 10

Figure 2. The ETCR indicators over time, OECD average 12

Figure 3. The indirect impact of energy sectors on the economy 15

Figure 4. Structure of the two energy sectors 16

Figure 5. Opening the Energy sector to competition 17

Figure 6. Reforms captured by the PMR indicator in the electricity sector since 2018 35

Figure 7. Reforms captured by the PMR indicator in the natural gas sector since 2018 36

Boxes 10

Box 1. The Product Market Regulation (PMR) indicator 10

Box 2. The Energy, Transport and Communications Regulation (ETCR) indicator 11

Box 3. Does retail electricity competition benefit households and small businesses? 14

Box 4. The 2024 South Africa Electricity Regulation Amendment Act 20

Box 5. The effects of protected electricity tariffs on competition outcomes 25

Box 6. Examples of electricity retailers enabling consumer-side flexibility 32

Table A.1. Representative states in the federal countries surveyed 46

Table A.2. More details on the legal restrictions on the number of operators across the electricity supply chain 46

Table A.3. Electricity: More details on the legal requirements for vertical separation of transmission and distribution from generation and retail supply 47

Table A.4. More details on the legal restrictions on the number of operators across the natural gas supply chain 48

Table A.5. Natural gas: More details on the legal requirements for vertical separation of transmission and distribution from generation and retail supply 49

Table A.6. More details on the categories of consumers allowed to choose their electricity retail supplier 50

Table A.7. More details on the regulation of electricity retail prices where competition has been introduced 50

Table A.8. More details on the estimated smart metering penetration rates 51

Table A.9. More on details on retail electricity price information available to consumers 51

Table A.10. More details on the categories of consumers allowed to choose their natural gas retail supplier 51

Table A.11. More details on natural gas retail price regulation 52

Table A.12. More on details on retail natural gas price information available to residential and small commercial consumers 52

Table A.13. More details on demand response schemes in the surveyed countries 53

Table A.14. More details on the regulation of hydrogen blending in the surveyed countries 53

Figure A.1. Comparison of the PMR sector indicator on electricity in 2018 and 2023-25 54

Figure A.2. Comparison of the PMR sector indicator on natural gas in 2018 and 2023-25 54