Emissions trading

European power is a great business. Like producers everywhere, Europe's utilities are shielded from international competition by the need to produce electricity near their customers. Many get extra protection from authorities' foot-dragging on structural reform. And, since 2005, most have enjoyed an additional fillip. Under the European Emissions Trading Scheme, customers have paid for the permits the utilities require to produce carbon, despite the fact that, so far, the companies have received them for free.