EPSU commissioned another research report to consider the benefits of the internal market for electricity and gas. The paper argues that the association between structural reforms in the network industries and productivity growth, with some notable exceptions, is insignificant. The benefits of structural reforms, such as lower prices, productivity growth, and positive employment output - promised and anticipated by the European Commission have not materialized. The paper shows most network industries, measured in actual outcomes, have produced the same results or worse after liberalization. This report focuses on the theoretical argument and empirical justification. The report of Steve Thomas concentrates on the empirical description of Europe’s electricity and gas markets. The theoretical as well as empirical underpinning of the experiment is seriously weak. >for the full report