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Mergers of Germany's natural gas market areas: Is transmission capacity booked efficiently?

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  • Keller, Jann T.
  • Kuper, Gerard H.
  • Mulder, Machiel

Abstract

In the past, networks of natural gas transmission system operators (TSOs) determined the gas market areas in the European Union. However, gas markets mergers introduce the possibility to book the transmission capacity of alternative TSOs. One necessary condition for competition among TSOs is the absence of restrictions in capacity booking. This paper analyses whether this holds for Germany. As German TSOs distinguish a number of capacity types to deal with network constraints, market mergers have created transport alternatives for only 32% of cross-border capacity products. In almost all cases, we find that gas transmission network users make efficient booking decisions.

Suggested Citation

  • Keller, Jann T. & Kuper, Gerard H. & Mulder, Machiel, 2019. "Mergers of Germany's natural gas market areas: Is transmission capacity booked efficiently?," Utilities Policy, Elsevier, vol. 56(C), pages 104-119.
    • Handle: RePEc:eee:juipol:v:56:y:2019:i:c:p:104-119
    DOI: 10.1016/j.jup.2018.11.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jann T. Keller & Gerard H. Kuper & Machiel Mulder, 2020. "Competition under revenue-cap regulation with efficiency benchmarking: tariff related incentives for gas transmission system operators in merged markets," Journal of Regulatory Economics, Springer, vol. 58(2), pages 141-165, December.
    2. Çam , Eren & Lencz, Dominic, 2020. "Pricing short-term gas transmission capacity: A theoretical approach to understand the diverse effects of the multiplier system," EWI Working Papers 2020-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    3. Keller, Jann T. & Kuper, Gerard H. & Mulder, Machiel, 2022. "Challenging natural monopolies: Assessing market power of gas transmission system operators for cross-border capacity," Energy Policy, Elsevier, vol. 170(C).
    4. Chen, Yufeng & Wang, Chuwen & Zhu, Zhitao, 2022. "Toward the integration of European gas futures market under COVID-19 shock: A quantile connectedness approach," Energy Economics, Elsevier, vol. 114(C).
    5. Çam , Eren & Lencz, Dominic, 2021. "Internal and external effects of pricing short-term gas transmission capacity via multipliers," EWI Working Papers 2021-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    6. Loureiro, Jose Roberto & Inchauspe, Julian & Aguilera, Roberto F., 2023. "World regional natural gas prices: Convergence, divergence or what? New evidence," Journal of Commodity Markets, Elsevier, vol. 32(C).
    7. Csercsik, Dávid, 2022. "Convex combinatorial auction of pipeline network capacities," Energy Economics, Elsevier, vol. 111(C).
    8. Çam, Eren & Lencz, Dominic, 2021. "Pricing short-term gas transmission capacity: A theoretical approach to understand the diverse effects of the multiplier system," Energy Economics, Elsevier, vol. 95(C).
    9. D'avid Csercsik, 2020. "Convex Combinatorial Auction of Pipeline Network Capacities," Papers 2002.06554, arXiv.org.

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    More about this item

    Keywords

    Gas market; Regulation; Market mergers; Transmission networks;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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