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Towards a common European Electricity market paths in the right direction… still far from an effective design

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  • J. Boucher
  • Y. Smeers

Abstract

This paper analyses the future organization of cross border trade in the European electricity market. The draft Regulation ``on Conditions for Access to the Network for Cross-Border Exchanges in Electricity'' issued in March 2001 by the European Commission together with related documents produced by the European association of Transmission System Operators (ETSO) and the Council of European Electricity Regulators (CEER) until that date constitute the backbone of this analysis. The paper examines whether the economic principles contained in these documents suffice to design a working European electricity market and if not, what is missing. It concludes that these principles need to be completed by harder measures in order to induce the ``real integrated single market'' of electricity claimed by the Commission. In short, the principles may be necessary, but they are unlikely to be sufficient.

Suggested Citation

  • J. Boucher & Y. Smeers, 2002. "Towards a common European Electricity market paths in the right direction… still far from an effective design," Competition and Regulation in Network Industries, Intersentia, vol. 3(4), pages 375-425, September.
    • Handle: RePEc:sen:journl:v:3:i:4:y:2002:p:375-425
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    Cited by:

    1. Glachant, Jean-Michel & Pignon, Virginie, 2005. "Nordic congestion's arrangement as a model for Europe? Physical constraints vs. economic incentives," Utilities Policy, Elsevier, vol. 13(2), pages 153-162, June.
    2. Neuhoff, Karsten & Barquin, Julian & Boots, Maroeska G. & Ehrenmann, Andreas & Hobbs, Benjamin F. & Rijkers, Fieke A.M. & Vazquez, Miguel, 2005. "Network-constrained Cournot models of liberalized electricity markets: the devil is in the details," Energy Economics, Elsevier, vol. 27(3), pages 495-525, May.
    3. Leuthold, Florian & Weigt, Hannes & von Hirschhausen, Christian, 2008. "Efficient pricing for European electricity networks - The theory of nodal pricing applied to feeding-in wind in Germany," Utilities Policy, Elsevier, vol. 16(4), pages 284-291, December.

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