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The Competition Law & Economics of Electricity Market Regulation

Author

Listed:
  • Peter Møllgaard

    (Copenhagen Business School)

  • Claus Kastberg Nielsen

    (Copenhagen Economics Aps.)

Abstract

Price correlations are used to delineate the geographic market in two recent Danish electricity cases. They indicate that power generators hold temporally transitory and irregularly intermittent dominant positions. Calculation of the Lerner index reveals that they abused this position. The Danish Competition Authority decided to settle this case by agreement for reasons explained. We finally indicate how economics may be used pro-actively to achieve a better market design.

Suggested Citation

  • Peter Møllgaard & Claus Kastberg Nielsen, 2003. "The Competition Law & Economics of Electricity Market Regulation," CIE Discussion Papers 2003-04, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    • Handle: RePEc:kud:kuieci:2003-04
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    File URL: http://www.econ.ku.dk/cie/dp/dp_2003-2006/2003-04.pdf/
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    Cited by:

    1. Verde, Stefano, 2008. "Everybody merges with somebody--The wave of M&As in the energy industry and the EU merger policy," Energy Policy, Elsevier, vol. 36(3), pages 1125-1133, March.

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    JEL classification:

    • H00 - Public Economics - - General - - - General

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