On 13 July 2005, the new German energy law entered into force. In their article, Dr. Camilla Bausch and Julia Rufin LL.M. explain the implementation of the European Directives in accelerating the liberalisation of the internal electricity and gas market. Following a description of the previous process of liberalisation at the European and National levels, the introduction of the new regulation of the energy market is discussed and the new rules concerning the de-monopolisation of the energy sector are explained. Furthermore, specific national rules outlining the European requirements are illustrated.

In this article, Camilla Bausch and Julia Rufin provide an overview of the content of the German energy law, as adopted by the German Parliament in 2005. The new energy law is based on European Directives. The authors focus their contributing article on the essential new provisions. A description of the future regulation of the energy market is provided, and the new rules concerning the unbundling of the energy sector are exposed. Furthermore, provisions that extend the requirements of European law are described.

The federal bill addressing non-discriminatory network access in the energy sector will significantly reform the existing legal framework for grid operators in Germany. A crucial aspect of the reform is the strengthening of rules for vertically integrated energy companies active in production and distribution, as well as grid operation. In her publication, Dr. Camilla Bausch critically analyses and evaluates unbundling rules for the electricity sector against the background of lawmakers' objectives – including promoting competition, reducing conflict of interest cases and quelling market distorting activities.

The reform of the energy law - initiated on the grounds of new EU directives - has led to a fundamental paradigm shift in Germany. Ecologic is supporting the German Federal Ministry for the Environment by assessing the revised energy law (Energiewirtschaftsgesetz - EnWG) and its regulations drafted by the Federal Ministry of Economics and Labour, paying particular attention to the environmental aspects.