The NOME law: implications for the French electricity market
In December 2010, France approved the law “Nouvelle Organisation du Marché de l’Electricité” (or NOME law) to promote competition in the retail electricity market. In practice, the law allows retailers to buy nuclear production from the incumbent, at a regulated access price. This mechanism works up to a ceiling of 100 terawatt hours, which represents one quarter of the incumbent’s production from nuclear plants. Each retailer is assigned a share of that amount proportionally to its portfolio of clients. We contribute to the debate raised by the NOME law regarding the evolution of retail market prices. We show that a price decrease results if the ceiling is sufficiently high compared to the market share of the retailers competing with the incumbent. This pro-competitive effect is stronger when the incumbent’s rivals take into account the impact of their market strategy on the redistribution rule. Finally, we find that, if the regulated price of the NOME electricity is set above the nuclear cost, the incumbent realizes a gain that may result in strategic withholding, weakening the pro-competitive effects of the law. Copyright Springer Science+Business Media New York 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 43 (2013)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/industrial+organization/journal/11149/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joskow, P. & Tirole, J., 2004.
"‘Retail Electricity Competition’,"
Cambridge Working Papers in Economics
0430, Faculty of Economics, University of Cambridge.
- Jean Tirole & Paul Joskow, 2006. "Retail Electricity Competition," Post-Print hal-00173713, HAL.
- Paul Joskow & Jean Tirole, 2004. "Retail Electricity Competition," Working Papers 0409, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Joskow, Paul & Tirole, Jean, 2004. "Retail Electricity Competition," IDEI Working Papers 311, Institut d'Économie Industrielle (IDEI), Toulouse.
- Paul L. Joskow & Jean Tirole, 2004. "Retail Electricity Competition," NBER Working Papers 10473, National Bureau of Economic Research, Inc.
- Nils-Henrik M. von der Fehr & Petter Vegard Hansen, 2010.
"Electricity Retailing in Norway,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 25-46.
- Nils-Henrik M. Von Der Fehr & Petter Vegard Hansen, 2009. "Electricity Retailing in Norway," RSCAS Working Papers 2009/04, European University Institute.
- Nils-Henrik M. Von Der Fehr & Petter Vegard Hansen, 2009. "Electricity Retailing in Norway," EUI-RSCAS Working Papers 4, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- von der Fehr, Nils-Henrik M. & Hansen, Petter Vegard, 2008. "Electricity Retailing in Norway," Memorandum 02/2009, Oslo University, Department of Economics.
- Mansur, Erin T, 2007. "Upstream Competition and Vertical Integration in Electricity Markets," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 125-56, February.
- Weigt, Hannes & Neumann, Anne & von Hirschhausen, Christian, 2009. "Divestitures in the Electricity Sector: Conceptual Issues and Lessons from International Experiences," The Electricity Journal, Elsevier, vol. 22(3), pages 57-69, April.
- repec:rje:randje:v:37:y:2006:i:4:p:799-815 is not listed on IDEAS
- James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2008.
"Vertical Arrangements, Market Structure, and Competition: An Analysis of Restructured US Electricity Markets,"
American Economic Review,
American Economic Association, vol. 98(1), pages 237-66, March.
- Bushnell, James & Mansur, Erin T. & Saravia, Celeste, 2008. "Vertical Arrangements, Market Structure and Competition: An Analysis of Restructured U.S. Electricity Markets," Staff General Research Papers Archive 13130, Iowa State University, Department of Economics.
- James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2007. "Vertical Arrangements, Market Structure, and Competition An Analysis of Restructured U.S. Electricity Markets," NBER Working Papers 13507, National Bureau of Economic Research, Inc.
- Ausubel, Lawrence M. & Cramton, Peter, 2010.
"Virtual power plant auctions,"
Elsevier, vol. 18(4), pages 201-208, December.
- Philippe Quirion, 2009.
"Historic versus output-based allocation of GHG tradable allowances: a comparison,"
Taylor & Francis Journals, vol. 9(6), pages 575-592, November.
- Philippe Quirion, 2009. "Historic versus output-based allocation of GHG tradable allowances: a comparison," Post-Print hal-00715558, HAL.
- Claude Crampes & Jean-Michel Glachant & Christian Von Hirschhhausen & François Lévêque & David Newbery & Ignacio Perez-Arriaga & Pippo Ranci & Steven Stoft & Bert Wilems, 2009.
"Where the Champsaur Commission Has Got It Wrong,"
- Crampes, Claude & Glachant, Jean-Michel & von Hirschhhausen, Christian & Lévêque, François & Newbery, David & Perez-Arriaga, Ignacio & Ranci, Pippo & Stoft, Steve & Wilems, Bert, 2010. "Where the Champsaur Commission Has Got It Wrong," The Electricity Journal, Elsevier, vol. 22(7), pages 81-86, August.
- Littlechild, Stephen, 2009. "Retail competition in electricity markets -- expectations, outcomes and economics," Energy Policy, Elsevier, vol. 37(2), pages 759-763, February.
- Defeuilley, Christophe, 2009. "Retail competition in electricity markets," Energy Policy, Elsevier, vol. 37(2), pages 377-386, February.
- Dixit, Avinash, 1980.
"The Role of Investment in Entry-Deterrence,"
Royal Economic Society, vol. 90(357), pages 95-106, March.
- Dixit, Avinash, 1979. "The Role of Investment in Entry-Deterrence," The Warwick Economics Research Paper Series (TWERPS) 140, University of Warwick, Department of Economics.
- Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-22, February.
When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:43:y:2013:i:2:p:196-213. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.