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Transport, the strategic issue at stake for the future of natural gas in Europe: avoidance of hidden collusion and implementation of efficient pricing

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  • Laurent David
  • Jacques Percebois

Abstract

Two main conditions must simultaneously be met for the European gas market to become a competitive market: 1) the absence of collusion among the various actors; 2) the setting of a fair and efficient tariff system for the gas pipelines. In order to evaluate the possibility of collusion among European operators, we give in the first part of the paper a picture of the different actors involved in the upstream segment and the transport-distribution one. We show in the second part that the regulators have to make two kinds of choices concerning the transport system pricing with TPA: 1) a choice concerning the type of control (price cap or cost plus); 2) a choice concerning the allocation of fixed costs between the capacity-booking charges and the actual transportation cost charges.

Suggested Citation

  • Laurent David & Jacques Percebois, 2001. "Transport, the strategic issue at stake for the future of natural gas in Europe: avoidance of hidden collusion and implementation of efficient pricing," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 16(4), pages 287-299.
    • Handle: RePEc:ids:ijgeni:v:16:y:2001:i:4:p:287-299
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