The European Commission has published the results of its inquiry into competition in the energy sector. The main problems identified include (i) high levels of market concentration, (ii) vertical integration leading to lack of equal access to infrastructure, and (iii) possible market sharing among incumbent operators. The Commission stated that it will make full use of its powers under antitrust, merger control and State aid rules to address the issues. In particular it will use far-reaching structural measures as remedies for antitrust infringements. In merger cases the Commission will pay particular attention to divestitures, gas release programmes, and the impact of long-term upstream contracts on downstream concentration. Regulatory changes will include the unbundling of network and supply activities, and increased transparency in market operations.