IDEAS home Printed from
   My bibliography  Save this article

Liberalization and Access to Essential Facilities: Regulation and Competition in Gas Storage


  • Alberto Cavaliere


Due to the liberalisation of the natural gas market in Europe, access to storage facilities should be granted to any firm operating in the wholesale market for gas. However single Countries are left with the option between negotiated access and regulated access. We investigate the issue of optimal regulation of gas storage on the basis of the essential facility doctrine. A typical test is applied to storage plants in order to ascertain if they should be treated as essential facilities, then the same test is considered in the case of Italy. We establish that regulated access is necessary in the first liberalisation stages. However in order to achieve efficiency concerning the allocation of scarce storage resources, the price of storage should correspond to its value for each firm. Therefore auctions can perform better with respect to cost reflective tariffs, as a regulatory instrument. Such a conclusion concerns also Italy where storage still represents an essential facility and capacity is rationed due both to strategic storage requirements imposed by security of supply concerns and to inefficient allocation procedures.

Suggested Citation

  • Alberto Cavaliere, 2007. "Liberalization and Access to Essential Facilities: Regulation and Competition in Gas Storage," Politica economica, Società editrice il Mulino, issue 1, pages 29-64.
  • Handle: RePEc:mul:je8794:doi:10.1429/24286:y:2007:i:1:p:29-64

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    File URL:
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Bonacina, Monica & Cret, Anna & Sileo, Antonio, 2009. "Gas storage services and regulation in Italy: A Delphi analysis," Energy Policy, Elsevier, vol. 37(4), pages 1277-1288, April.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:je8794:doi:10.1429/24286:y:2007:i:1:p:29-64. 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: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.