Cross-border infrastructure constraints, regulatory measures and economic integration of the Dutch - German gas market
AbstractWe estimate to which extent regulatory measures in the Dutch market have reduced the vulnerability of this market to constraints in the cross-border infrastructure with Germany, which is the largest Dutch neighbouring market. We measure this vulnerability by the degree the markets are integrated, i.e. to which extent the gas prices differ between the Dutch market (Title Transfer Facility or TTF) and the German market (NetConnectGermany or NCG). The constraints are measured through the utilisation of the cross-border infrastructure. We find evidence that the introduction of a market-based balancing regime together with the obligation to deliver all gas on the TTF on 1 April 2011 reduced the impact of the utilisation the Dutch-German cross-border infrastructure on the differences in prices between these countries.
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Bibliographic InfoPaper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 13001-EEF.
Date of creation: 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-08 (All new papers)
- NEP-COM-2013-02-08 (Industrial Competition)
- NEP-ENE-2013-02-08 (Energy Economics)
- NEP-EUR-2013-02-08 (Microeconomic European Issues)
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