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Regulation, Competition and Investment in the German Electricity Market: RegTP or REGTP

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  • Gert Brunekreeft
  • Sven Twelemann

Abstract

The German energy industries will be subjected to regulation of network access enforced by a sector-specific regulator. Whereas the gas industry broke the regime of negotiated third party access, in electricity nTPA ‘worked’, although it clearly resulted in a margin squeeze. The government currently discusses whether to use rate-of-return or incentive regulation, to allow ex-ante approval of charges, and the length of the regulatory lag. Close examination suggests that generation capacity still is adequate, but in the longer term there is reason to be alert. The regulatory changes and emission trading system can both contribute to supply security by increasing investment.

Suggested Citation

  • Gert Brunekreeft & Sven Twelemann, 2005. "Regulation, Competition and Investment in the German Electricity Market: RegTP or REGTP," The Energy Journal, , vol. 26(1_suppl), pages 99-126, June.
    • Handle: RePEc:sae:enejou:v:26:y:2005:i:1_suppl:p:99-126
    DOI: 10.5547/ISSN0195-6574-EJ-Vol26-NoSI-5
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    References listed on IDEAS

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    1. Mandy, David M, 2000. "Killing the Goose That May Have Laid the Golden Egg: Only the Data Know Whether Sabotage Pays," Journal of Regulatory Economics, Springer, vol. 17(2), pages 157-172, March.
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