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Liberalizing the Dutch Electricity Market : 1998-2004

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  • van Damme, E.E.C.

    (Tilburg University, School of Economics and Management)

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.
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Suggested Citation

  • van Damme, E.E.C., 2005. "Liberalizing the Dutch Electricity Market : 1998-2004," Other publications TiSEM cfb6cafb-c5f8-4d41-ade3-5, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:cfb6cafb-c5f8-4d41-ade3-58998263e2e2
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/775836/2005-009.pdf
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    1. van Damme, E.E.C., 2004. "Pragmatic Privatization : The Netherlands 1982-2002," Other publications TiSEM 04b70da9-4327-4138-80de-2, Tilburg University, School of Economics and Management.
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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. Newbery, David M. & Greve, Thomas, 2017. "The strategic robustness of oligopoly electricity market models," Energy Economics, Elsevier, vol. 68(C), pages 124-132.
    3. Lhoest-Snoeck, Sietske & van Nierop, Erjen & Verhoef, Peter C., 2014. "For New Customers Only: A Study on the Effect of Acquisition Campaigns on a Service Company's Existing Customers' CLV," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 210-224.
    4. Hüschelrath, Kai, 2008. "Is it Worth all the Trouble? The Costs and Benefits of Antitrust Enforcement," ZEW Discussion Papers 08-107, ZEW - Leibniz Centre for European Economic Research.
    5. Machiel Mulder & Gijsbert Zwart, 2006. "Government involvement in liberalised gas markets; a welfare-economic analysis of Dutch gas-depletion policy," CPB Document 110.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Ondřej Machek & Jiří Hnilica, 2013. "International Experiences with Using TFP Benchmarking in Energy Industries Regulation," Ekonomika a Management, Prague University of Economics and Business, vol. 2013(3), pages 62-73.
    7. Mulder, Machiel & Willems, Bert, 2019. "The Dutch retail electricity market," Energy Policy, Elsevier, vol. 127(C), pages 228-239.
    8. Weigt, Hannes, 2009. "A Review of Liberalization and Modeling of Electricity Markets," MPRA Paper 65651, University Library of Munich, Germany.
    9. 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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