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Ownership unbundling in electricity distribution: empircal evidence from New Zealand

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  • Nillesen, P.
  • Pollitt, M.G.

Abstract

New Zealand is the only country to date to have implemented forced ownership unbundling of electricity distribution from the rest of the electricity supply industry (in 1998). This paper examines the impact of this policy on electricity prices, quality of service and costs. We find that ownership unbundling did not achieve its objectives of facilitating greater competition in the electricity supply industry but that it did lead to lower costs and higher quality of service. We suggest that this experience indicates the potential benefits of ownership unbundling in Europe but also the danger of un-intended consequences.

Suggested Citation

  • Nillesen, P. & Pollitt, M.G., 2008. "Ownership unbundling in electricity distribution: empircal evidence from New Zealand," Cambridge Working Papers in Economics 0836, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0836
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    More about this item

    Keywords

    electricity distribution; ownership unbundling; New Zealand;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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