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The Allocative Efficiency of the Dutch Gas-Balancing Market

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  • A. Van Dinther
  • M. Mulder

Abstract

The recently introduced market-based gas-balancing regime in the Netherlands is meant to improve the efficiency of gas balancing in order to enhance the development of the Dutch wholesale market for gas. This paper shows that the efficiency of the new balancing regime could be improved further by making the market simpler with less restrictive rules. By removing the reserve market, the incentive component as well as the obligation on all players to offer assistance gas, the balancing regime would still enable the TSO to realise network stability but with less allocative inefficiencies.

Suggested Citation

  • A. Van Dinther & M. Mulder, 2013. "The Allocative Efficiency of the Dutch Gas-Balancing Market," Competition and Regulation in Network Industries, Intersentia, vol. 14(1), pages 47-73, March.
    • Handle: RePEc:sen:journl:v:14:i:1:y:2013:p:47-73
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    Cited by:

    1. Kuper, Gerard H. & Mulder, Machiel, 2016. "Cross-border constraints, institutional changes and integration of the Dutch–German gas market," Energy Economics, Elsevier, vol. 53(C), pages 182-192.
    2. Schipperus, Ouren T. & Mulder, Machiel, 2015. "The effectiveness of policies to transform a gas-exporting country into a gas-transit country: The case of The Netherlands," Energy Policy, Elsevier, vol. 84(C), pages 117-127.

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