Electricity Market Regulatory Reform and Competition – Case Study of the New Zealand Electricity Market
AbstractAll around the world, electricity market reforms involve various forms of unbundling previously vertically integrated state-owned or privately owned electricity monopolies. New Zealand is the only country in the developed world that has implemented forced ownership unbundling of electricity distribution and transmission activities from the rest of the electricity network. The Electricity Industry Reform Act 1998 (EIRA) strictly prohibited distribution businesses from being involved in either generation or retailing activities. However, the strictownership separation between distribution and generation was relaxed not long after the enactment of this legislation. In 2010, the New Zealand government enacted the Electricity Industry Act 2010 (EIA), which revised the strict ownership separation between distribution and retail by allowing distribution back into retailing, and relaxed further the separation between distribution and generation by raising the threshold further for ownership separation between distribution and generation. This study will review the New Zealand reform experience, examine the market structures resulting from ownership unbundling, and evaluate the impacts of ownership unbundling on the performance of the electricity sector. It will also explore the rationale underlying recent reforms that allow re-integration, and to gauge the impact of the recent reforms.
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.
This chapter was published in:
This item is provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Chapters with number 2011-rpr-17-06.
Contact details of provider:
Postal: The ASEAN Secretariat Mezzanine Floor, 70A Jl.Sisingamangaraja, Jakarta 12110
Web page: http://www.eria.org/
More information through EDIRC
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.:
- Carlo Fiorio & Massimo Florio & Raffaele Doronzo, 2007. "The Electricity Industry Reform Paradigm in the European Union: Testing the Impact on Consumers," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1066, Universitá degli Studi di Milano.
- Paul Nillesen & Michael Pollitt, 2011.
"Ownership Unbundling in Electricity Distribution: Empirical Evidence from New Zealand,"
Review of Industrial Organization,
Springer, vol. 38(1), pages 61-93, January.
- Nillesen, P. & Pollitt, M.G., 2008. "Ownership unbundling in electricity distribution: empircal evidence from New Zealand," Cambridge Working Papers in Economics 0836, Faculty of Economics, University of Cambridge.
- Gao, Hang & Van Biesebroeck, Johannes, 2011.
"Effects of Deregulation and Vertical Unbundling on the Performance of China's Electricity Generation Sector,"
CEPR Discussion Papers
8695, C.E.P.R. Discussion Papers.
- Hang GAO & Jo VAN BIESEBROECK, 2011. "Effects of deregulation and vertical unbundling on the performance of China's electricity generation sector," Center for Economic Studies - Discussion papers ces11.30, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Roland Meyer, 2012. "Economies of scope in electricity supply and the costs of vertical separation for different unbundling scenarios," Journal of Regulatory Economics, Springer, vol. 42(1), pages 95-114, August.
- Faye Steiner, 2001. "Regulation, industry structure and performance in the electricity supply industry," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 143-182.
- Perry, Martin K., 1989. "Vertical integration: Determinants and effects," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 4, pages 183-255 Elsevier.
- Mota, R.L., 2003. "The Restructuring and Privatisation of Electricity Distribution and Supply Business in Brazil: A Social Cost-Benefit Analysis," Cambridge Working Papers in Economics 0309, Faculty of Economics, University of Cambridge.
- Piacenza, Massimiliano & Vannoni, Davide, 2004. "Choosing among alternative cost function specifications: an application to Italian multi-utilities," Economics Letters, Elsevier, vol. 82(3), pages 415-422, March.
- Joskow, Paul L., 2005.
"Markets for Power in the United States: An Interim Assessment,"
- Paul L. Joskow, 2006. "Markets for Power in the United States: An Interim Assessment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 1-36.
- Paul L. Joskow, 2005. "Markets For Power In The United States - An Interim Assessment," Working Papers 0512, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Nagayama, Hiroaki, 2010. "Impacts on investments, and transmission/distribution loss through power sector reforms," Energy Policy, Elsevier, vol. 38(7), pages 3453-3467, July.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
- Pollitt, Michael, 2009.
"Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market,"
Elsevier, vol. 17(1), pages 13-23, March.
- Pollitt, M., 2007. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Cambridge Working Papers in Economics 0756, Faculty of Economics, University of Cambridge.
- Yu, W. & Pollitt, M.G., 2009. "Does Liberalisation cause more Electricity Blackouts? Evidence from a Global Study of Newspaper Reports," Cambridge Working Papers in Economics 0911, Faculty of Economics, University of Cambridge.
- Wolak, Frank A., 2010. "Using restructured electricity supply industries to understand oligopoly industry outcomes," Utilities Policy, Elsevier, vol. 18(4), pages 227-246, December.
- Fetz, Aurelio & Filippini, Massimo, 2010. "Economies of vertical integration in the Swiss electricity sector," Energy Economics, Elsevier, vol. 32(6), pages 1325-1330, November.
- Anaya, K.L., 2010. "The Restructuring and Privatisation of the Peruvian Electricity Distribution Market," Cambridge Working Papers in Economics 1017, Faculty of Economics, University of Cambridge.
- Mansur, Erin T, 2007. "Upstream Competition and Vertical Integration in Electricity Markets," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 125-56, February.
- Kaserman, David L & Mayo, John W, 1991. "The Measurement of Vertical Economies and the Efficient Structure of the Electric Utility Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 39(5), pages 483-502, September.
- Kwoka, John E., 2002. "Vertical economies in electric power: evidence on integration and its alternatives," International Journal of Industrial Organization, Elsevier, vol. 20(5), pages 653-671, May.
- Toba, Natsuko, 2007. "Welfare impacts of electricity generation sector reform in the Philippines," Energy Policy, Elsevier, vol. 35(12), pages 6145-6162, December.
- Pollitt, M.G., 2009. "Electricity Liberalisation in the European Union: A Progress Report," Cambridge Working Papers in Economics 0953, Faculty of Economics, University of Cambridge.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hiroshi Okasaki).
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.