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Regulation, Competition and Investment in the German Electricity Market: RegTP or REGTP

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Author Info

  • Brunekreeft, G.
  • Twelemann, S.
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    Abstract

    The German energy industries will be subjected to regulation of network access enforced by a sector-specific regulator. Whereas the gas industry broke the regime of negotiated third party access, in electricity nTPA ‘worked’, although it clearly resulted in a margin squeeze. The government currently discusses whether to use rate-of-return or incentive regulation, to allow ex-ante approval of charges, and the length of the regulatory lag. Close examination suggests that generation capacity still is adequate, but in the longer term there is reason to be alert. The regulatory changes and emission trading system can both contribute to retain supply security by increasing investment.

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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep68.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 0501.

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    Length: 33
    Date of creation: Jan 2005
    Date of revision:
    Handle: RePEc:cam:camdae:0501

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

    Related research

    Keywords: regulation; competition; emission trading; gas; electricity;

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    References

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    1. 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.
    2. Knieps, Günter, 2002. "Wettbewerb auf den Ferntransportnetzen der deutschen Gaswirtschaft: Eine netzökonomische Analyse," Discussion Papers 85 [rev.], University of Freiburg, Institute for Transport Economics and Regional Policy.
    3. David M. Newbery, 1995. "Power Markets and Market Power," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 39-66.
    4. Muller, Chr. & Wienken, W., 2004. "Measuring the degree of economic opening in the German electricity market," Utilities Policy, Elsevier, vol. 12(4), pages 283-290, December.
    5. Gert Brunekreeft, 2004. "Regulatory Threat in Vertically Related Markets: The Case of German Electricity," European Journal of Law and Economics, Springer, vol. 17(3), pages 285-305, May.
    6. Glachant, Jean-Michel & Dubois, Ute & Perez, Yannick, 2008. "Deregulating with no regulator: Is the German electricity transmission regime institutionally correct?," Energy Policy, Elsevier, vol. 36(5), pages 1600-1610, May.
    7. Mandy, David M, 2000. "Killing the Goose That May Have Laid the Golden Egg: Only the Data Know Whether Sabotage Pays," Journal of Regulatory Economics, Springer, vol. 17(2), pages 157-72, March.
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    Cited by:
    1. Mulder, Machiel & Schoonbeek, Lambert, 2013. "Decomposing changes in competition in the Dutch electricity market through the Residual Supply Index," Research Report 13003-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. Ferkingstad, Egil & Løland, Anders & Wilhelmsen, Mathilde, 2011. "Causal modeling and inference for electricity markets," Energy Economics, Elsevier, vol. 33(3), pages 404-412, May.

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