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Regulatory Threat in Vertically Related Markets; The Case of German Electricity

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  • Brunekreeft, G.
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    Abstract

    This paper applies the concept of regulatory threat to analyse the electricity supply industry in Germany, where in contrast to other European member states, there is no ex-ante regulation of network access charges. Instead, network access relies on industrial self-regulation and ex-post control by the Cartel Office. The paper modifies the concept of regulatory threat to vertically related markets, stressing the balance between the level of the network access charges and (non-price) discrimination against their parties. The conceptual framework appears to explain developments in the German electricity sector accurately and thus provides a useful tool for policy analysis.

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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep10.pdf
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    Bibliographic Info

    Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0228.

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    Length: 21
    Date of creation: Oct 2002
    Date of revision:
    Handle: RePEc:cam:camdae:0228

    Note: CMI IO
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    Web page: http://www.econ.cam.ac.uk/index.htm

    Related research

    Keywords: regulation; discrimination; network industries; electricity;

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    References

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    1. Glazer, Amihai & McMillan, Henry, 1992. "Pricing by the Firm under Regulatory Threat," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 1089-99, August.
    2. Driffield, Nigel & Ioannidis, Christos, 2000. "Effectiveness and effects of attempts to regulate the UK petrol industry," Energy Economics, Elsevier, vol. 22(3), pages 369-381, June.
    3. Brunekreeft, Gert & Keller, Katja, 2000. "The electricity supply industry in Germany: market power or power of the market?," Utilities Policy, Elsevier, vol. 9(1), pages 15-29, March.
    4. Gert Brunekreeft, 2002. "Regulation and Third-Party Discrimination in the German Electricity Supply Industry," European Journal of Law and Economics, Springer, vol. 13(3), pages 203-220, May.
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    Cited by:
    1. Christian Huveneers, 2005. "Working Paper 09-05 - Réforme du marché de l’électricité en Belgique. Leçons de l’Espagne, de l’Allemagne et de la Grande-Bretagne," Working Papers 0509, Federal Planning Bureau, Belgium.
    2. repec:fpb:wpaper:98 is not listed on IDEAS
    3. Thomas Wein, 2005. "Associations` Agreement and the Interest of the Network Suppliers - The Strategic Use of Structural Features," Working Paper Series in Economics 7, University of Lüneburg, Institute of Economics.
    4. Georg Meran & Christian von Hirschhausen, 2004. "Corporate Self-Regulation vs. Ex-Ante Regulation of Network Access: A Model of the German Gas Sector," Discussion Papers of DIW Berlin 436, DIW Berlin, German Institute for Economic Research.
    5. Christian Growitsch & Thomas Wein, 2004. "The Influence of Vertical Integration and Property Rights on Network Access Charges in the German Electricity Market," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 224(6), pages 673-695, November.
    6. Jan van der Linden, 2005. "Planning Paper 98 - Réforme de marché dans les industries de réseau en Belgique
      [Planning Paper 98 - Markthervorming in netwerkindustrieën in België]
      ," Planning Papers 98, Federal Planning Bureau, Belgium.

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