‘Regulatory Issues in Merchant Transmission Investment’
AbstractDriven by fear of underinvestment in network assets, merchant investment in electricity transmission networks (MTI) is now legally allowed. Given that MTI is a real possibility, regulators face a new set of questions. After classifying different types of MTI, the paper raises and analyses regulatory questions, concentrating on the effect on competition, ownership questions, third-party-access regimes and must-offer provisions. Basically, the paper concludes that the light-handed approach of unregulated MTI supports a light-handed approach with respect to complementary measures as well. In many cases, it is justified to refrain from sector-specific arrangements because competition law, if necessary at all, will suffice. However, details matter.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0422.
Date of creation: Apr 2004
Date of revision:
Note: CMI38, IO
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Web page: http://www.econ.cam.ac.uk/index.htm
Electricity; Investment; Regulation; Transmission; Merchant;
Find related papers by JEL classification:
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
- L5 - Industrial Organization - - Regulation and Industrial Policy
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