Equal access to the energy infrastructure as a precondition to promote competition in the energy market. The case of European Union

In many EU countries, the infrastructures for supplying electricity and gas (electricity networks, gas pipelines, and storage facilities) are still properties of the so-called vertically integrated undertakings (VIU) responsible for the extraction or generation, supply, and transmission and distribu...

Full description

Saved in:
Bibliographic Details
Published in:Energy policy 2010-07, Vol.38 (7), p.3691-3700
Main Author: Nowak, Bartlomiej
Format: Article
Language:English
Subjects:
Applied sciences
Competition
Economic data
Energy
Energy economics
Energy industry
Energy market
Energy policy
Europe
European Union
Exact sciences and technology
General, economic and professional studies
Infrastructure
Infrastructure Competition Third party access
Market access
Market entry
Public infrastructure
Studies
Third party access
Vertical integration
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In many EU countries, the infrastructures for supplying electricity and gas (electricity networks, gas pipelines, and storage facilities) are still properties of the so-called vertically integrated undertakings (VIU) responsible for the extraction or generation, supply, and transmission and distribution of the energy. While competition can be promoted in the generation/production and supply side of the vertical integration, transmission and distribution segments remain natural monopolies that hinder market mechanisms. Vertical integration simply raises the possibility for incumbents to favor their own divisions and to block new entrants. As a result, non-discriminatory and equal access to the electricity and gas transmission and distribution networks, also LNG and storage facilities, is crucial to foster competition in politically delicate structures of the electricity and gas markets.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2010.02.047