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The relationship between regulation and competition policy for network utilities

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  • Newbery, D.

Abstract

Should regulation of potentially competitive elements of network utilities be left with sector regulators or solely subject to normal competition laws? Britain evolved licenses for network activities overseen by regulators while the EU places more emphasis on making sector regulation consistent with competition law. The paper discusses the appropriateness of the competition law approach for telecoms and electricity. Post-modern utilities like telecoms, in which facilities-based competition is possible, lend themselves to the approach laid out in the Communications Directives, and its application to mobile call termination is discussed. Electricity, where collective dominance is more likely, does not fit comfortably into this approach. Instead, licence conditions retain advantages where it may be necessary to modify market rules in a timely and well-informed manner, as exemplified by the English Electricity Pool.

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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 0631.

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Length: 28
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:cam:camdae:0631

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

Related research

Keywords: Regulation; competition policy; telecommunications; electricity; market power;

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References

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  1. Bogorad, Cynthia S. & Penn, David W., 2001. "Cost-of-Service Rates to Market-Based Rates to Price Caps to ?!#?#!?," The Electricity Journal, Elsevier, vol. 14(4), pages 61-72, May.
  2. Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. SMEERS, Yves, 2005. "How well can one measure market power in restructured electricity systems ?," CORE Discussion Papers 2005050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Martin Hellwig, 2008. "Competition Policy and Sector-Specific Regulation for Network Industries," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2008_29, Max Planck Institute for Research on Collective Goods.

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