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Electricity transmission pricing: The German case


  • Matthias Niederprüm
  • Michael Pickhardt


This paper elucidates the German electric power market, especially the electricity transmission pricing system that has been in force since January 2000. This paper points to several distorting pricing features, as well as to grid access problems, and suggests that a regulation office should be established. Moreover, it is argued that an independent grid operator for the entire German grid would enhance its efficient operation, and thereby increase the overall efficiency of the German electric power market. In addition, the actual cost structure and calculation procedure of a German grid operator is described in some detail. Copyright International Atlantic Economic Society 2002

Suggested Citation

  • Matthias Niederprüm & Michael Pickhardt, 2002. "Electricity transmission pricing: The German case," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(2), pages 136-147, June.
  • Handle: RePEc:kap:atlecj:v:30:y:2002:i:2:p:136-147
    DOI: 10.1007/BF02299158

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    References listed on IDEAS

    1. Hsu, Michael, 1997. "An introduction to the pricing of electric power transmission," Utilities Policy, Elsevier, vol. 6(3), pages 257-270, September.
    2. Read, E. G., 1997. "Transmission pricing in New Zealand," Utilities Policy, Elsevier, vol. 6(3), pages 227-235, September.
    3. Green, Richard, 1999. "The Electricity Contract Market in England and Wales," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 107-124, March.
    4. Baughman, Martin L., 1997. "Pricing of open-access transmission services in Texas," Utilities Policy, Elsevier, vol. 6(3), pages 195-201, September.
    5. Dismukes, David E. & Cope III, Robert F. & Mesyanzhinov, Dmitry, 1998. "Capacity and economies of scale in electric power transmission," Utilities Policy, Elsevier, vol. 7(3), pages 155-162, November.
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