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Regulatory Reform in the Electricity Sector: An Analysis of the Commission's Internal Market Proposals

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  • Argyris, Nicholas

Abstract

After a first phase of market opening decided by the Council of Ministers in 1990, the European Commission proposed in February 1992 a second phase including competition in the electricity generation, line construction and third party access (TPA), and associated measures (including unbundling) required for the system to function effectively. The logic of the proposals is examined, as are the implications of TPA for security of supply, for prices to captive customers and for regulation. Concerns expressed on these issues are analyzed and found to be rather theoretical and not to take account of the detail of the Commission's proposals. The author notes that, having given maximum scope to subsidiarity the Commission will need carefully to supervise implementation of the proposals, that interconnections will need to be developed on a European level and that in a later phase the further opening of the franchise market will be an important issue. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Argyris, Nicholas, 1993. "Regulatory Reform in the Electricity Sector: An Analysis of the Commission's Internal Market Proposals," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 9(1), pages 31-44, Spring.
    • Handle: RePEc:oup:oxford:v:9:y:1993:i:1:p:31-44
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    Cited by:

    1. Tennbakk, Berit, 2000. "Power trade and competition in Northern Europe," Energy Policy, Elsevier, vol. 28(12), pages 857-866, October.
    2. Schmidt, Susanne K., 1996. "Sterile debates and dubious generalisations: An empirical critique of European integration theory based on the integration processes in telecommunications and electricity," MPIfG Discussion Paper 96/5, Max Planck Institute for the Study of Societies.

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