The European electricity market is going through changes due to liberalization efforts, but there are still issues with market concentration and lack of competition. Problems include insufficient unbundling, high market concentration, and disparities between network costs and wholesale prices. The natural gas market also faces challenges, impacting electricity generation. Mergers between companies and state aid to national champions further complicate fair competition. The electricity sector's unique characteristics make it susceptible to disruptions and innovations. Additionally, the industry's high capital intensity and storage constraints pose additional challenges.