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Unbundling costs in the energy sector: competitive environment for the customers´ benefits or too costly experiment?

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  • Milan Vondráček
  • Tomáš Skuček
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    Abstract

    The paper describes process of electricity market liberalization, and concentrates on one phase - unbundling. First part sums up findings on electricity market liberalization, and explains unbundling principles, initial situation and expected outcome. In the second part unbundling costs are analyzed and in the third part, fulfillment of unbundling targets and its contribution to improve end-customer's position are assessed. The authors arrived to conclusion that unbundling contributed to decrease electricity end-price for households in the 2005 - 2008 period, despite substantial unbundling costs. However other factors, such as demand increase and electricity price convergence between the Czech Republic and Germany, were much stronger and caused substantial electricity price increase in the examined period.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Ekonomika a Management.

    Volume (Year): 2010 (2010)
    Issue (Month): 3 ()
    Pages:

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    Handle: RePEc:prg:jnleam:v:2010:y:2010:i:3:id:102

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    Related research

    Keywords: Energetika; unbundling; energy; energy distribution; distibuce elektrické energie;

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    References

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    1. Erin T. Mansur, 2008. "Measuring Welfare in Restructured Electricity Markets," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 369-386, May.
    2. Pollitt, M., 2007. "The arguments for and against ownership unbundling of energy transmission networks," Cambridge Working Papers in Economics 0737, Faculty of Economics, University of Cambridge.
    3. Baarsma, Barbara & de Nooij, Michiel & Koster, Weero & van der Weijden, Cecilia, 2007. "Divide and rule. The economic and legal implications of the proposed ownership unbundling of distribution and supply companies in the Dutch electricity sector," Energy Policy, Elsevier, vol. 35(3), pages 1785-1794, March.
    4. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2008. "Economies of Scale and Scope in Multi-Utilities," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 123-144.
    5. de Nooij, Michiel & Baarsma, Barbara, 2009. "Divorce comes at a price: An ex ante welfare analysis of ownership unbundling of the distribution and commercial companies in the Dutch energy sector," Energy Policy, Elsevier, vol. 37(12), pages 5449-5458, December.
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