Stranded costs in European electricity markets

The advent of liberalisation in Europe, as in the US, has led to a lively debate on the magnitude of stranded costs and how they will be paid. The European Commission is keen to see these costs accounted for ahead of market opening, but this will not be easy. Taking a lead from American utilities, European firms may sell assets to realise their true value, and offset the debts incurred to pay for them. Simon Allen PricewaterhouseCoopers, Global Energy & Mining Group