Journal
EUROPEAN ECONOMIC REVIEW
Volume 46, Issue 4-5, Pages 919-927Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/S0014-2921(01)00225-2
Keywords
competition; regulation; electricity; contracts; market power
Categories
Ask authors/readers for more resources
The European Commission's attempt to update the Electricity and Gas Directives to underwrite unbundling and full liberalisation coincides with the California electricity crisis. The paper argues that compared to the US, much of the EU lacks the necessary legislative and regulatory power to mitigate generator market power. Unless markets are made more contestable, transmission capacity expanded and adequate generation capacity ensured, liberalisation may lead to higher prices. Ending the domestic franchise could remove the counterparty for the contracts required for adequate investment to sustain competitive pricing. (C) 2002 Elsevier Science B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available