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Equal access to the energy infrastructure as a precondition to promote competition in the energy market. The case of European Union

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  • Nowak, Bartlomiej

Abstract

In many EU countries, the infrastructures for supplying electricity and gas (electricity networks, gas pipelines, and storage facilities) are still properties of the so-called vertically integrated undertakings (VIU) responsible for the extraction or generation, supply, and transmission and distribution of the energy. While competition can be promoted in the generation/production and supply side of the vertical integration, transmission and distribution segments remain natural monopolies that hinder market mechanisms. Vertical integration simply raises the possibility for incumbents to favor their own divisions and to block new entrants. As a result, non-discriminatory and equal access to the electricity and gas transmission and distribution networks, also LNG and storage facilities, is crucial to foster competition in politically delicate structures of the electricity and gas markets.

Suggested Citation

  • Nowak, Bartlomiej, 2010. "Equal access to the energy infrastructure as a precondition to promote competition in the energy market. The case of European Union," Energy Policy, Elsevier, vol. 38(7), pages 3691-3700, July.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3691-3700
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    References listed on IDEAS

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    1. David M. Newbery, 2005. "Electricity liberalization in Britain: The quest for a satisfactory wholesale market design," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 43-70.
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    3. Glachant, Jean-Michel & Dubois, Ute & Perez, Yannick, 2008. "Deregulating with no regulator: Is the German electricity transmission regime institutionally correct?," Energy Policy, Elsevier, vol. 36(5), pages 1600-1610, May.
    4. repec:dau:papers:123456789/5372 is not listed on IDEAS
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    Cited by:

    1. Federico Boffa & Viswanath Pingali & Francesca Sala, 2015. "Strategic investment in merchant transmission: the impact of capacity utilization rules," Working Papers 2015/12, Institut d'Economia de Barcelona (IEB).
    2. Tsatsos, Aristidis, 2012. "Die Liberalisierung des russischen Gassektors: 3 Szenarios?
      [The liberalisation of the Russian gas sector: 3 scenarios?]
      ," MPRA Paper 44623, University Library of Munich, Germany.
    3. Boffa, Federico & Pingali, Viswanath & Sala, Francesca, 2015. "Strategic investment in merchant transmission: The impact of capacity utilization rules," Energy Policy, Elsevier, vol. 85(C), pages 455-463.

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