IDEAS home Printed from https://ideas.repec.org/a/sae/jouinf/v6y2014i2p167-183.html
   My bibliography  Save this article

Does NTPC Have a Dominant Position? A Critical Analysis

Author

Listed:
  • Rajesh Gangakhedkar

    (Assistant Professor, Institute of Public Enterprise, Hyderabad, Telangana, India rajesh@ipeindia.org)

  • R.K. Mishra

    (Director, Institute of Public Enterprise, Osmania University Campus, Hyderabad, Telangana, India rkmishra@ipeindia.org)

Abstract

The past two decades have witnessed huge changes in the electricity sector. The changes in this sector at a rapid pace world over have resulted in competition in some segments of the sector, such as, generation and in some cases in distribution. India is no exception to the reforms that are being undertaken. The provisions of Open Access, power trading, competitive bidding, mentioned in the Electricity Act of 2003 are expected to give a spurt to competition. The favourable impact of all these factors includes wide choice of electricity suppliers for consumers and electricity at cheaper rates, which is in fact one of the cherished goals of reforms in the sector. However, it is not necessary that competitive markets would produce competitive results. There could be significant distortions in the form of anti-competitive behaviour, which would get manifested in the form of collusions, abuse of dominant position, etc. Experiences of some countries reveal that anti-competitive behaviour of various players in the power sector is not very uncommon. In India also there are controversies regarding the provision of Open Access, which are pointer towards an anti-competitive conduct. There are also apprehensions regarding abuse of dominant position by some companies. The primary objective of this article is to examine whether NTPC Ltd., which is the largest power generating company in India, has a dominant position in the power sector. The article also discusses the possible ways in which a dominant power-generating company could abuse its position. The study is conceptual in nature and draws heavily from the secondary sources of information. The study uses two tools: Herfindahl–Hirschman Index (HHI) and Residual Supply Index (RSI).

Suggested Citation

  • Rajesh Gangakhedkar & R.K. Mishra, 2014. "Does NTPC Have a Dominant Position? A Critical Analysis," Journal of Infrastructure Development, India Development Foundation, vol. 6(2), pages 167-183, December.
    • Handle: RePEc:sae:jouinf:v:6:y:2014:i:2:p:167-183
    DOI: 10.1177/0974930614564650
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0974930614564650
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0974930614564650?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Diana Moss, 2008. "Antitrust Versus Regulatory Merger Review: The Case of Electricity," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(3), pages 241-261, May.
    2. Catherine D. Wolfram, 1999. "Measuring Duopoly Power in the British Electricity Spot Market," American Economic Review, American Economic Association, vol. 89(4), pages 805-826, September.
    3. Jürgen Weiss, 2002. "Market Power and Power Markets," Interfaces, INFORMS, vol. 32(5), pages 37-46, October.
    4. Niamh McCarthy, 2005. "Market Size, Market Structure & Market Power in the Irish Electricity Industry," Papers WP168, Economic and Social Research Institute (ESRI).
    Full references (including those not matched with items on IDEAS)

    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. David P. Brown & Andrew Eckert, 2017. "Electricity market mergers with endogenous forward contracting," Journal of Regulatory Economics, Springer, vol. 51(3), pages 269-310, June.
    2. Moore, J. & Woo, C.K. & Horii, B. & Price, S. & Olson, A., 2010. "Estimating the option value of a non-firm electricity tariff," Energy, Elsevier, vol. 35(4), pages 1609-1614.
    3. Newbery, David M. & Greve, Thomas, 2017. "The strategic robustness of oligopoly electricity market models," Energy Economics, Elsevier, vol. 68(C), pages 124-132.
    4. Lucas W. Davis, Shaun Mcrae, and Enrique Seira Bejarano, 2019. "An Economic Perspective on Mexico's Nascent Deregulation of Retail Petroleum Markets," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    5. Fabra, Natalia & Toro, Juan, 2005. "Price wars and collusion in the Spanish electricity market," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 155-181, April.
    6. Thomas‐Olivier Léautier, 2001. "Electricity Auctions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(3), pages 331-358, September.
    7. Pio Baake & Sebastian Schwenen & Christian von Hirschhausen, 2020. "Local Power Markets," Discussion Papers of DIW Berlin 1904, DIW Berlin, German Institute for Economic Research.
    8. Karakatsani, Nektaria V. & Bunn, Derek W., 2008. "Forecasting electricity prices: The impact of fundamentals and time-varying coefficients," International Journal of Forecasting, Elsevier, vol. 24(4), pages 764-785.
    9. Huurman, C. & Huisman, R., 2004. "Being in Balance: Economic Efficiency in the Dutch Power Market," ERIM Report Series Research in Management ERS-2004-065-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    10. Karakatsani Nektaria V & Bunn Derek W., 2010. "Fundamental and Behavioural Drivers of Electricity Price Volatility," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 14(4), pages 1-42, September.
    11. Bunn, Derek W. & Chen, Dipeng, 2013. "The forward premium in electricity futures," Journal of Empirical Finance, Elsevier, vol. 23(C), pages 173-186.
    12. Meredith Fowlie & Mar Reguant & Stephen P. Ryan, 2016. "Market-Based Emissions Regulation and Industry Dynamics," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 249-302.
    13. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2017. "Has renewable energy induced competitive behavior in the Spanish electricity market?," Energy Policy, Elsevier, vol. 104(C), pages 171-182.
    14. Green, Richard, 2003. "Failing electricity markets: should we shoot the pools?," Utilities Policy, Elsevier, vol. 11(3), pages 155-167, September.
    15. Rubin, Ofir D. & Babcock, Bruce A., 2013. "The impact of expansion of wind power capacity and pricing methods on the efficiency of deregulated electricity markets," Energy, Elsevier, vol. 59(C), pages 676-688.
    16. Paul L. Joskow, 2001. "California's Electricity Crisis," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 17(3), pages 365-388.
    17. Yu, Yang & Chen, Lin & Liu, Rui, 2023. "The source of wind power producers’ market power," Energy Policy, Elsevier, vol. 173(C).
    18. Matthias Janssen & Magnus Wobben, "undated". "Electricity Pricing and Market Power - Evidence from Germany," Working Papers 200121, Institute of Spatial and Housing Economics, Munster Universitary.
    19. Jan Boone, 2008. "A New Way to Measure Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1245-1261, August.
    20. David P. Brown & Andrew Eckert, 2018. "Analyzing the Impact of Electricity Market Structure Changes and Mergers: The Importance of Forward Commitments," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(1), pages 101-137, February.

    More about this item

    Keywords

    Dominant position; anticompetitive conduct; Competition Commission of India; Residual Supply Index; Hirschman Herfindahl Index;
    All these keywords.

    JEL classification:

    • L - Industrial Organization
    • L - Industrial Organization
    • L - Industrial Organization

    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:sae:jouinf:v:6:y:2014:i:2:p:167-183. 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: SAGE Publications (email available below). General contact details of provider: http://www.idfresearch.org .

    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.