A normative structure for the European electricity industry is discussed, This model builds upon proposals and experiences in several European nations (in particular the Netherlands and the UK), Two rivalling structures (vertical integration versus open competition) are compared, Our ＇open structure＇ is specific in not allowing TPA (third party access) to the grid, and in making the necessary distinction among ＇independent generators＇ and Independent Generators of Own Power IGOPS. Cost economies (scale, scope and density) are related to the three major functions of a power system (generation, transport, distribution), The performance of the rival models is assessed for five criteria: sustainability, economic efficiency, regulatory efficiency, equity, and institutional feasibility.