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Cooperate or compete: The Swedish electricity market in transition

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  • Olerup, Brita

Abstract

The electricity market in Sweden in changing from being a geographic monopoly to allowing competition in areas other than transmission and distribution. When it was announced that the rules were about to change, a conflict arose between two of the larger generators concerning which of them should transmit electricity to a nearby distributor. The arguments used coincide with market theory but not with market practice. Ideally, a market consists of independent parts competing with one another to the advantage of customers, who obtain lower prices. In reality, organizations depend on one another and build social networks based on mutual trust. Such networks are essential for business and trade to develop. Preconceptions such as those shown by the parties here threaten, even before rules have been changed, to demolish an elaborate and extended system of cooperation.

Suggested Citation

  • Olerup, Brita, 1995. "Cooperate or compete: The Swedish electricity market in transition," Energy, Elsevier, vol. 20(12), pages 1237-1246.
    • Handle: RePEc:eee:energy:v:20:y:1995:i:12:p:1237-1246
    DOI: 10.1016/0360-5442(95)00079-V
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    Cited by:

    1. Olerup, Brita, 1998. "Energy services a smoke screen," Energy Policy, Elsevier, vol. 26(9), pages 715-724, August.
    2. Brita Olerup, 1999. "Managing external demands: Renewable sources versus efficient use," Business Strategy and the Environment, Wiley Blackwell, vol. 8(1), pages 62-74, January.

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