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Decomposing changes in competition in the Dutch electricity market through the Residual Supply Index

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  • Mulder, Machiel
  • Schoonbeek, Lambert

    (Groningen University)

Abstract

We propose to assess the influence of a number of events on the degree of competition in the Dutch electricity wholesale market over the period 2006-2011 through a decomposition method based on the Residual Supply Index. We distinguish regulatory market-integration events, firm-level events and changes in the level of residual demand. We conclude that market-integration measures to improve competition have been effective, but that the changes in residual demand appear to have been equally important. Firm-level events have only had a minor impact on the intensity of competition.

Suggested Citation

  • Mulder, Machiel & Schoonbeek, Lambert, 2013. "Decomposing changes in competition in the Dutch electricity market through the Residual Supply Index," Research Report 13003-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:13003-eef
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    3. Bataille, Marc & Steinmetz, Alexander & Thorwarth, Susanne, 2014. "Screening instruments for monitoring market power in wholesale electricity markets: Lessons from applications in Germany," DICE Discussion Papers 150, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    4. Keller, Jann T. & Kuper, Gerard H. & Mulder, Machiel, 2022. "Challenging natural monopolies: Assessing market power of gas transmission system operators for cross-border capacity," Energy Policy, Elsevier, vol. 170(C).
    5. Machiel Mulder, 2015. "Competition in the Dutch Electricity Market: An Empirical Analysis over 2006-2011," The Energy Journal, , vol. 36(2), pages 1-28, April.
    6. Dzikri Firmansyah Hakam, 2018. "Market Power Modelling in Electricity Market: A Critical Review," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 347-356.
    7. Bataille, Marc & Bodnar, Olivia & Steinmetz, Alexander & Thorwarth, Susanne, 2019. "Screening instruments for monitoring market power: The return on withholding capacity index (RWC)," DICE Discussion Papers 311, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    8. Bataille, Marc & Bodnar, Olivia & Steinmetz, Alexander & Thorwarth, Susanne, 2019. "Screening instruments for monitoring market power — The Return on Withholding Capacity Index (RWC)," Energy Economics, Elsevier, vol. 81(C), pages 227-237.
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    10. Mulder, Machiel & Scholtens, Bert, 2016. "A plant-level analysis of the spill-over effects of the German Energiewende," Applied Energy, Elsevier, vol. 183(C), pages 1259-1271.

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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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