The third annual report of the Market Observatory for Energy focuses on the main developments of the energy markets in Europe. Including 2008 and 2009 statistical data, it represents Europe's energy position and it contains a detailed description of the evolution of energy production, final consumption, the energy mix and the uses of energy for different purposes. These elements are presented in a time frame stretching from January 2009 to September 2010, thus including a period with large amplitudes in price movements, followed by market consolidation. Some countries outside the European... Union which have relevance in energy relations with the countries of the EU are also presented in this report, mainly from the angle of their influence on the energy position of the Union.