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Economic Reform in Europe: Integrating and Liberalizing the Market for Services

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  • Newbery, David M G

Abstract

The EU faces challenges in reforming the Gas and Electricity Directives to implement the single market in electricity and gas. The Paper argues that there is unfinished business in the areas of regulation, restructuring, encouraging proper risk management through contracting, and designing markets and regulation to ensure effective and sustainable competition in the services supplied over the networks. Regulators often lack critical information and appropriate power to act. Restructuring is problematic, requiring forceful competition authorities with a clear agenda to achieve desirable structural reforms. A key issue is striking the right balance between complete liberalisation and ensuring adequate capacity and investment. Finally, proactive competition policies will be necessary to resist the powerful forces for vertical and horizontal integration visible in the Union.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3183.

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Date of creation: Jan 2002
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Handle: RePEc:cpr:ceprdp:3183

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Keywords: competition; contracts; electricity; eu; gas; regulation; risk;

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References

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  1. Green, Richard & Newbery, David M G, 1991. "Competition in the British Electricity Spot Market," CEPR Discussion Papers 557, C.E.P.R. Discussion Papers.
  2. Preetum Domah & Michael G. Pollitt, 2001. "The restructuring and privatisation of the electricity distribution and supply businesses in England," Fiscal Studies, Institute for Fiscal Studies, vol. 22(1), pages 107-146, March.
  3. Newbery, D. M., 1997. "Competition, Contracts and Entry in the Electricity Spot Market," Cambridge Working Papers in Economics 9707, Faculty of Economics, University of Cambridge.
  4. David M. Newbery, 1995. "Power Markets and Market Power," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 39-66.
  5. Watts, Price C., 2001. "Heresy? The Case Against Deregulation of Electricity Generation," The Electricity Journal, Elsevier, vol. 14(4), pages 19-24, May.
  6. 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. Lise, Wietze & Kruseman, Gideon, 2008. "Long-term price and environmental effects in a liberalised electricity market," Energy Economics, Elsevier, vol. 30(2), pages 230-248, March.
  2. Gual, Jordi, 2002. "Regulatory change in network industries: The Spanish experience," IESE Research Papers D/478, IESE Business School.
  3. Kennedy, David, 2003. "Liberalisation of the Russian power sector," Energy Policy, Elsevier, vol. 31(8), pages 745-758, June.
  4. Spanjer, Aldo, 2006. "European gas regulation: a change of focus," MPRA Paper 21146, University Library of Munich, Germany.

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