IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2021i1p35-69.html
   My bibliography  Save this article

Effects of the EU Electricity Markets Opening on Competition and Prices

Author

Listed:
  • Nevena Byanova

Abstract

The paper studies the ongoing regulatory, institutional and organisational developments in EU energy sector during the last two decades that change the way electricity markets operate. In particular, it addresses the EU efforts in creating competitive and sustainable electricity markets. Its aim is to explore the effects of the reform on market competition and electricity price evolution. The paper firstly presents the specific aspects of the electricity market, which helps to understand its overall functioning. The current electricity market structure, participants behaviour and market performance are discussed. The analysis presents the contradictions between the EU energy and climate targets and their adverse impact on end-consumers, who are stated as the main beneficiaries of the reform. The study comes to the conclusion that the persistence of shortcomings in the electricity market defined by policy deficiencies at an EU level and diverging energy policies at a Member State level requires further efforts to make national markets work as a single European energy market with common rules and prices.

Suggested Citation

  • Nevena Byanova, 2021. "Effects of the EU Electricity Markets Opening on Competition and Prices," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 35-69.
    • Handle: RePEc:bas:econst:y:2021:i:1:p:35-69
    as

    Download full text from publisher

    File URL: https://www.iki.bas.bg/Journals/EconomicStudies/2021/2021-1/3_Byanova.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Preetum Domah & Michael G. Pollitt, 2001. "The restructuring and privatisation of the electricity distribution and supply businesses in England," Fiscal Studies, Institute for Fiscal Studies, vol. 22(1), pages 107-146, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dimitar Zlatinov & Nedko Kosev & Stoyan Shalamanov, 2022. "Regional Electricity Trade in South East Europe – Findings from a Panel Structural Gravity Model," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 3-18.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tin Cheuk Leung & Kwok Ping Ping & Kevin K. Tsui, 2019. "What can deregulators deregulate? The case of electricity," Journal of Regulatory Economics, Springer, vol. 56(1), pages 1-32, August.
    2. Jamasb, T., 2002. "Reform and Regulation of the Electricity Sectors in Developing Countries," Cambridge Working Papers in Economics 0226, Faculty of Economics, University of Cambridge.
    3. Jamasb, Tooraj & Pollitt, Michael, 2008. "Reference models and incentive regulation of electricity distribution networks: An evaluation of Sweden's Network Performance Assessment Model (NPAM)," Energy Policy, Elsevier, vol. 36(5), pages 1788-1801, May.
    4. Dennis L. Weisman, 2023. "Measuring the Power of Regulatory Regimes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 62(1), pages 19-32, February.
    5. Michael G. Pollitt & Andrew S. J. Smith, 2002. "The restructuring and privatisation of British Rail: was it really that bad?," Fiscal Studies, Institute for Fiscal Studies, vol. 23(4), pages 463-502, December.
    6. Kaller, Alexander & Bielen, Samantha & Marneffe, Wim, 2018. "The impact of regulatory quality and corruption on residential electricity prices in the context of electricity market reforms," Energy Policy, Elsevier, vol. 123(C), pages 514-524.
    7. Newbery, D., 2002. "Issues and Options for Restructuring Electricity Supply Industries," Cambridge Working Papers in Economics 0210, Faculty of Economics, University of Cambridge.
    8. Tovar, Beatriz & Javier Ramos-Real, Francisco & de Almeida, Edmar Fagundes, 2011. "Firm size and productivity. Evidence from the electricity distribution industry in Brazil," Energy Policy, Elsevier, vol. 39(2), pages 826-833, February.
    9. Andrea Goldstein & José Claudio Linhares Pires, 2006. "Brazilian Regulatory Agencies: Early Appraisal and Looming Challenges," Chapters, in: Edmund Amann (ed.), Regulating Development, chapter 6, Edward Elgar Publishing.
    10. Mota, R.L., 2003. "The Restructuring and Privatisation of Electricity Distribution and Supply Business in Brazil: A Social Cost-Benefit Analysis," Cambridge Working Papers in Economics 0309, Faculty of Economics, University of Cambridge.
    11. See, Kok Fong & Coelli, Tim, 2013. "Estimating and decomposing productivity growth of the electricity generation industry in Malaysia: A stochastic frontier analysis," Energy Policy, Elsevier, vol. 62(C), pages 207-214.
    12. Michael G. Pollitt, 2019. "The European Single Market in Electricity: An Economic Assessment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(1), pages 63-87, August.
    13. Adwoa Asantewaa & Tooraj Jamasb & Manuel Llorca, 2022. "Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach," Energies, MDPI, vol. 15(6), pages 1-29, March.
    14. David Newbery, 2021. "Strengths and weaknesses of the British market model," Chapters, in: Jean-Michel Glachant & Paul L. Joskow & Michael G. Pollitt (ed.), Handbook on Electricity Markets, chapter 6, pages 156-181, Edward Elgar Publishing.
    15. Toru Hattori & Jamasb, T. & Pollitt, M.G., 2002. "Relative Performance of UK and Japanese Electricity Distribution Systems 1985-1998: Lessons for Incentive Regulation," Cambridge Working Papers in Economics 0212, Faculty of Economics, University of Cambridge.
    16. Gransaull, Gareth & Rhodes, Ekaterina & Fairbrother, Malcolm, 2023. "Institutions for effective climate policymaking: Lessons from the case of the United Kingdom," Energy Policy, Elsevier, vol. 175(C).
    17. Newbery, David M., 2001. "Economic reform in Europe: integrating and liberalizing the market for services," Utilities Policy, Elsevier, vol. 10(2), pages 85-97, June.
    18. Mircea (Mike) Bostan, 2021. "EU Electricity Policy (Im)balance: A Quantitative Analysis of Policy Priorities Since 1986," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 298-309.
    19. Anthony E. Boardman & Aidan R. Vining, 2012. "A Review and Assessment of Privatization in Canada," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 5(4), January.
    20. Prandini, Alberto, 2007. "Good, BETTA, best? The role of industry structure in electricity reform in Scotland," Energy Policy, Elsevier, vol. 35(3), pages 1628-1642, March.

    More about this item

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2021:i:1:p:35-69. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.