Deregulating with no regulator: Is the German electricity transmission regime institutionally correct?
AbstractFrom 1998 to 2005, the German transmission grid has been put under a self-regulated arrangement. It seems hard to believe that transmission lines can be opened to "third-party access" only with a "negotiated access regime" and no regulator supervision. It seems contradictory with the notion of "ex post contractual hazards" promoted by V. Goldberg and O. Williamson. If a weak institutional arrangement is implemented, one might assume that it has to be harmful to network and market access. If it is not to be inefficient, why and how could it work? When looking at rules and prices for accessing the transmission network and the corresponding wholesale markets in Germany, the "club" arrangement for transmission opening does not appear so harmful. Accordingly, we have to reconsider the ex ante and ex post institutional mechanism of such a "club" arrangement. Ex ante, we first reconsider skills and strengths of industrial consumers and German Business associations in defining and assessing rules of transmission access. We underline that incomplete vertical and horizontal integration of German electricity companies impeded extensive cartel collusion. Ex post, we first look at a strong Competition Authority backing. Then we discover that ex ante and ex post dimensions are much more mixed and reinforced in an open "cumulative pro-competition process" framed by the Competition Authority.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 36 (2008)
Issue (Month): 5 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jean-Michel Glachant, 2002.
"L'approche néo-institutionnelle de la réforme des industries de réseaux,"
Programme National Persée, vol. 53(3), pages 425-435.
- Jean-Michel Glachant, 2002. "L'approche néo-institutionnelle de la réforme des industries de réseaux," Revue économique, Presses de Sciences-Po, vol. 53(3), pages 425-435.
- Muller, Chr. & Wienken, W., 2004. "Measuring the degree of economic opening in the German electricity market," Utilities Policy, Elsevier, vol. 12(4), pages 283-290, December.
- Nyborg, Karine & Telle, Kjetil, 2003.
"The Role of Warnings in Regulation: Keeping Control with Less Punishment,"
24/2003, Oslo University, Department of Economics.
- Nyborg, Karine & Telle, Kjetil, 2004. "The role of warnings in regulation: keeping control with less punishment," Journal of Public Economics, Elsevier, vol. 88(12), pages 2801-2816, December.
- repec:sen:journl:v:3:y::i:3:p:297-312 is not listed on IDEAS
- J-M- Glachant, 2002. "Why regulate deregulated network industries?," Competition and Regulation in Network Industries, Intersentia, vol. 3(3), pages 297-312, September.
- Wallsten, Scott J, 2001. "An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 1-19, March.
- Anne Perrot, 2002. "Les frontières entre régulation sectorielle et politique de la concurrence," Revue Française d'Économie, Programme National Persée, vol. 16(4), pages 81-112.
- Buchanan, James M, 1987.
"The Constitution of Economic Policy,"
American Economic Review,
American Economic Association, vol. 77(3), pages 243-50, June.
- Pablo T. Spiller & Ingo Vogelsang, 1997. "The Institutional Foundations of Regulatory Commitment in the UK: The Case of Telecommunications," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(4), pages 607-, December.
- Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 421-52.
- Levy, Brian & Spiller, Pablo T, 1994. "The Institutional Foundations of Regulatory Commitment: A Comparative Analysis of Telecommunications Regulation," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(2), pages 201-46, October.
- Jean-Michel Glachant, 2009.
"Regulating Networks in the New Economy,"
RSCAS Working Papers
2009/05, European University Institute.
- Nowak, Bartlomiej, 2010. "Equal access to the energy infrastructure as a precondition to promote competition in the energy market. The case of European Union," Energy Policy, Elsevier, vol. 38(7), pages 3691-3700, July.
- Lumini?a Gabriela POPESCU, 2011. "Structural Dynamic Of The Public Sector And Multilevel Governance: Between Hierarchies, Market And Network Forms," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2011(17), pages 47-63, December.
- Mustafa Durakoglu, S., 2011. "Political institutions of electricity regulation: The case of Turkey," Energy Policy, Elsevier, vol. 39(9), pages 5578-5587, September.
- Brunekreeft, G. & Twelemann, S., 2005. "Regulation, Competition and Investment in the German Electricity Market: RegTP or REGTP," Cambridge Working Papers in Economics 0501, Faculty of Economics, University of Cambridge.
- Dubois, Ute, 2009. "Adaptability of competitive electricity reforms a modular analysis," Energy Policy, Elsevier, vol. 37(4), pages 1213-1221, April.
- Lætitia Guérin-Schneider & Michel Nakhla, 2012. "Emergence of an innovative regulation mode in water utilities in France: between commission regulation and franchise bidding," European Journal of Law and Economics, Springer, vol. 33(1), pages 23-45, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.