The development of the European electricity market in a juridical no man’s land

Energy trade, including trade in energy derivatives, may entail various potential risks. Conceivably, these risks could jeopardize European Union objectives, such as consumer protection. Under the European Third Energy Package, which recently entered into force, Member States are required to confer new competencies upon national energy regulators to regulate this type of trade. This chapter elaborates on the sector-specific regulation of the financial aspects of energy trade, with reference to several types of energy contracts. It also deals with the overlaps and differences between this particular type of regulation and financial regulation in general. Furthermore, the article explores whether the current regulation of trade in energy derivatives is sufficient.