[en] In summer 2002 The Algemene Energieraad (General Energy Council) of The Netherlands has commissioned a research study to investigate the strategic behaviour of major European energy companies and the major governmental institutions in charge of regulating them. In total 18 electricity and gas companies and 9 governmental public institutions were analyzed. The aim of this research was to explore how the microeconomic view of analysing company and government strategy can contribute to understanding the likely future path of the energy industry, and what follows from that for the regulatory agenda and company strategy development. The is structured in seven chapters. The first chapter will first outline what the challenges for the European energy industry are. Most of the challenges result in the need for high investments and considerable changes in operating systems and business models. Against these challenges, the second chapter outlines what the expectations are of the industry. The public goods to be delivered by the industry is in the main to deliver high quality products at low prices and minimized environmental impact, in order to promote the conditions for economic growth of the European economy. Chapter 3 then describes the typical behaviour of the energy companies, being mostly engaged in a strategic conduct that is autonomy-oriented, short term and emergent planning with an international focus. Chapter 4 explains how the challenges and expectations could be better met with a strategic behaviour of companies that are network-oriented, long term deliberate planners and with a local focus. Chapter 5 explains that the observed strategic behaviour leads to an industrial structure that is geared towards maintaining static competition and avoiding innovation. Chapter 6 shows, how the current regulatory regime of the industry may reinforce this static competition even further. Chapter 7 finally concludes with alternative course of actions how the regulatory environment could encourage more dynamic competition instead