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Liberalising the Dutch Electricity Market: 1998-2004

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  • van Damme , E.

Abstract

We describe the evolution of the structure of the Dutch electricity market since the E-Act 1998 that implemented the first EU Electricity Directive. The initial idea of the government was to combine liberalization in supply with concentration in generation, with the attempt to create a national champion that could compete on the European market. As the producers could not agree, the attempt failed and competition could develop. The production side now is less concentrated than in several other EU countries and the competition authority has played an active role in keeping it that way, among others by means of its intelligent analysis of the Nuon-Reliant merger, in which a VPP auction was proposed as a remedy. In contrast, regulation of the network business cannot be considered a success as bad drafting of the law prevented effective incentive regulation. Finally, the liberalization of the retail market for green energy, in effect since July 2001, has shown that retail competition may not yield many consumer benefits.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • van Damme , E., 2005. "Liberalising the Dutch Electricity Market: 1998-2004," Cambridge Working Papers in Economics 0526, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0526 Note: CMI, IO
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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep77.pdf
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    1. van Damme, E.E.C., 2004. "Pragmatic Privatization : The Netherlands 1982-2002," Discussion Paper 2004-007, Tilburg University, Tilburg Law and Economic Center.
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    Cited by:

    1. Machiel Mulder, 2015. "Competition in the Dutch Electricity Market: An Empirical Analysis over 2006-2011," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    2. repec:eee:eneeco:v:68:y:2017:i:c:p:124-132 is not listed on IDEAS
    3. Ondřej Machek & Jiří Hnilica, 2013. "International Experiences with Using TFP Benchmarking in Energy Industries Regulation," Ekonomika a Management, University of Economics, Prague, vol. 2013(3), pages 62-73.
    4. Hüschelrath, Kai, 2008. "Is it Worth all the Trouble? The Costs and Benefits of Antitrust Enforcement," ZEW Discussion Papers 08-107, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Weigt, Hannes, 2009. "A Review of Liberalization and Modeling of Electricity Markets," MPRA Paper 65651, University Library of Munich, Germany.
    6. Machiel Mulder & Gijsbert Zwart, 2006. "Government involvement in liberalised gas markets; a welfare-economic analysis of Dutch gas-depletion policy," CPB Document 110, CPB Netherlands Bureau for Economic Policy Analysis.

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    JEL classification:

    • F0 - International Economics - - General

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