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Common Carriage and the Pricing of Electricity Transmission

Author

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  • Chris Doyle
  • Maria Maher

Abstract

The electric supply industry in Europe is increasingly under pressure to become more competitive. Deregulation and privatisation in the United Kingdom demonstrate the feasibility of this. Draft directives have already been agreed upon by the European Commission to open access in energy markets. We examine the relationship between generators, transmission networks and consumers within a full information static, short-run framework. We show that open access is desirable if accompanied by common carriage and competition in generation. Common carriage is a necessary but not a sufficient condition for efficient outcomes to emerge. We also discuss the pricing of transmission services under conditions of open access and competition in generation.

Suggested Citation

  • Chris Doyle & Maria Maher, 1992. "Common Carriage and the Pricing of Electricity Transmission," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 63-94.
  • Handle: RePEc:aen:journl:1992v13-03-a04
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    Cited by:

    1. Tennbakk, Berit, 2000. "Power trade and competition in Northern Europe," Energy Policy, Elsevier, vol. 28(12), pages 857-866, October.
    2. Kumkar, Lars, 1996. "Zur Politik der US-Federal Energy Regulatory Commission bei der Etablierung eines Common-Carrier-Modells in der Stromübertragung," Kiel Working Papers 771, Kiel Institute for the World Economy (IfW Kiel).

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    JEL classification:

    • F0 - International Economics - - General

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