The OECD has said the EU needs greater competition in its energy markets to deliver lower prices to consumers and make energy supplies more secure.
The Paris-based think-tank made the comment in an economic survey of the EU published this morning.
The call echoed proposals made this week by the European Commission for major gas and electricity suppliers to give up their power grids and gas pipelines in the hope of injecting more competition into the sector.
The Organisation for Economic Co-operation and Development said European sectors that had been liberalised most, such as air transport and telecoms, had delivered lower prices and better service for consumers and other firms.
The report was the OECD's first economic survey of the EU. It assesses the effectiveness of EU-wide policies in boosting growth and living standards among member countries.
