The 10th edition of the European Energy Markets Observatory covers the full year 2007 and the winter 2007/08. The key findings include: -Oil price increase in 2007 and H1 2008 exacerbated fundamental tensions in the industry. The present price drop poses other problems. -Limited progress has been made to solve the “reducing CO2 emissions / satisfying the energy demand” equation, but there are reasons to hope -After an interim improvement in 2006, electricity security of supply deteriorated in 2007, calling for a significant investment program -Geopolitical tensions have increased risk on gas security of supply -Progress was made towards a common electricity market in Europe, but competition is not really taking up and prices to end customers skyrocketed in early 08 -The Utilities are in a good financial situation and important M&A have landed in 2008 -The financial and economic crisis is impacting the Utilities industry and should accelerate their business model change
