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Did the « Pax Electrica » agreements reduce the Suez’ power relationship on Elia, the Belgian electricity grid manager ?

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Author Info
Marc Levy () (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels.)
Abstract

The company Elia, which manages the grid system of electricity in Belgium, is mainly controlled by the principal producer of electricity, Electrabel, and by political powers. The Belgian state has recently constrained the French group to yield 3% of its stake in Elia as foreseen in the Pax Electrica agreements. This article studies the impact of this transfer by means of the Banzhaf index that measures the intensity of control. The results show that theoretically these agreements change the power relationship on the manager of the grid.

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File URL: http://www.solvay.edu/EN/Research/Bernheim/documents/wp09035.pdf
File Format: application/pdf
File Function: First version, 2009
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Publisher Info
Paper provided by Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB) in its series Working Papers CEB with number 09-035.RS.

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Length: 30 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:sol:wpaper:09-035

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Related research
Keywords: Ownership and control; Electricity market; Banzhaf index;

Find related papers by JEL classification:
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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This page was last updated on 2009-11-26.


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