The paper critically discusses the reform of the energy sector in the European Union from the beginnings of the liberalisation processes in 1996 until present. Through EU energy policies and relevant legislation the goals to achieve are sustainable development, security of supply and competitiveness, together with focussing on the needs of customers. The paper analyses all three above-mentioned pillars and customer protection requirements from the viewpoint: customers should have high quality energy delivered at affordable prices. We call for competitiveness to be further underlined by the market. Despite some concerns related to market models, with the latest impetus from the European institutions the market will, and is able to, develop and to integrate also renewable sources. Where the market does not deliver sufficiently, regulators have to ensure customer protection, especially for vulnerable customers in a period of increasing prices. •Past and expected future EU (European Union) energy market development and impediments are presented.•A new development objective is formulated, energy policy instruments discussed.•An orientation switch from utility to customer needs and protection is analysed.•Further research in supply chain proposed to reach environmental targets affordably.•New market design, security of supply and environment policy are more equilibrated.