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The NOME Law: Implications for the French Electricity Market

  • Pouyet, Jérôme
  • Sanin, Maria Eugenia
  • Creti, Anna
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    The French law "Nouvelle Organisation du Marché de l'Electricité" makes available, at a regulated price, withdrawal rights to source low-cost electricity production from nuclear plants owned by the incumbent. Downstream market retailers benefit from such a measure, up to a given amount fixed by the law, to compete on a level playing field with the historical supplier. Our analysis assesses whether this production release programme is likely to result in a lower retail price. We show that whether pro-competitive effects arise depends not only on the amount of the preassigned capacity but also on the rules used to allocate it to retailers.

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    File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/12068/1/docweb1102.pdf
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    Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/12068.

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    Date of creation: Apr 2013
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    Publication status: Published in Journal of Regulatory Economics, 2013, Vol. 43, no. 2. pp. 196-213.Length: 17 pages
    Handle: RePEc:dau:papers:123456789/12068
    Contact details of provider: Web page: http://www.dauphine.fr/en/welcome.html

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    1. 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.
    2. von der Fehr, Nils-Henrik M. & Hansen, Petter Vegard, 2008. "Electricity Retailing in Norway," Memorandum 02/2009, Oslo University, Department of Economics.
    3. 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.
    4. Defeuilley, Christophe, 2009. "Retail competition in electricity markets," Energy Policy, Elsevier, vol. 37(2), pages 377-386, February.
    5. 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.
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