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Equal access to the energy infrastructure as a precondition to promote competition in the energy market. The case of European Union

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  • Nowak, Bartlomiej
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    Abstract

    In many EU countries, the infrastructures for supplying electricity and gas (electricity networks, gas pipelines, and storage facilities) are still properties of the so-called vertically integrated undertakings (VIU) responsible for the extraction or generation, supply, and transmission and distribution of the energy. While competition can be promoted in the generation/production and supply side of the vertical integration, transmission and distribution segments remain natural monopolies that hinder market mechanisms. Vertical integration simply raises the possibility for incumbents to favor their own divisions and to block new entrants. As a result, non-discriminatory and equal access to the electricity and gas transmission and distribution networks, also LNG and storage facilities, is crucial to foster competition in politically delicate structures of the electricity and gas markets.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-4YMBW5Y-1/2/6bd1d1a9f936f1a62e197db9f289b102
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 7 (July)
    Pages: 3691-3700

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3691-3700

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Infrastructure Competition Third party access;

    References

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    1. Creti, Anna & Villeneuve, Bertrand, 2004. "Long-term contracts and take-or-pay clauses in natural gas Markets," Economics Papers from University Paris Dauphine 123456789/5372, Paris Dauphine University.
    2. Hogan, William W, 2002. "Electricity Market Restructuring: Reforms of Reforms," Journal of Regulatory Economics, Springer, vol. 21(1), pages 103-32, January.
    3. Newbery, D., 2004. "Electricity Liberalisation in Britain: the quest for a satisfactory wholesale market design," Cambridge Working Papers in Economics 0469, Faculty of Economics, University of Cambridge.
    4. Glachant, Jean-Michel & Dubois, Ute & Perez, Yannick, 2008. "Deregulating with no regulator: Is the German electricity transmission regime institutionally correct?," Energy Policy, Elsevier, vol. 36(5), pages 1600-1610, May.
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    Cited by:
    1. Tsatsos, Aristidis, 2012. "Die Liberalisierung des russischen Gassektors: 3 Szenarios?
      [The liberalisation of the Russian gas sector: 3 scenarios?]
      ," MPRA Paper 44623, University Library of Munich, Germany.

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