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Ownership Unbuilding in Electricity Markets - A Social Cost Benefit Analysis of the German TSO'S

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Author Info
Brunekreeft, G.
Abstract

This paper presents a social cost benefit analysis of ownership unbundling (as compared to legal und functional unbundling) of the electricity transmission system operators in Germany. The study relies on the Residual Supply Index for its competitive concept. The analysis models some 15 effects, grouped in three categories: the competition effect, the interconnector effect and the cost effect. Facing a looming capacity shortage, we find that the total available generation capacity and the effect of unbundling on capacity are of crucial importance. Overall, for the base-case, the net weighted discounted social-cost-benefit effect (weighted-?SCB) is likely to be positive, but small.

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File URL: http://www.eprg.group.cam.ac.uk/category/publications/
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Publisher Info
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0833.

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Date of creation: Jul 2008
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Handle: RePEc:cam:camdae:0833

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Related research
Keywords: unbundling; electricity; networks; regulation; competition;

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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