European energy policy focuses on the opening of the energy market to ensure competition in generation, supply, and retail activities; and in this context on the reinforcement of cross-border interconnections. Despite such endeavors, regulatory structures remain fragmented, which is reflected by the disparity of energy prices inside the EU. A European dimension related to affordability and to the harmonization of national security of supply policies is also missing in this context. Policy coordination is further required among Member States and together with other trading partners in order to secure investments in energy markets. In the electricity market, different market policy instruments are envisaged as part of the EU Energy Union. Among them, a reform of the European Trading Scheme is put in place and a convergence of existing national capacity remuneration schemes is considered. This section assesses these market instruments and the overall progress towards an EU internal energy market. It further discusses the implication of EU energy policies on energy prices.