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

Author

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  • Brunekreeft, G.
  • Twelemann, S.

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 retain supply security by increasing investment.

Suggested Citation

  • Brunekreeft, G. & Twelemann, S., 2005. "Regulation, Competition and Investment in the German Electricity Market: RegTP or REGTP," Cambridge Working Papers in Economics 0501, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0501
    Note: CMI, IO
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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep68.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christian von Hirschhausen & Astrid Cullmann & Andreas Kappeler, 2006. "Efficiency analysis of German electricity distribution utilities - non-parametric and parametric tests," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2553-2566.
    2. Angenendt, Nicole & Müller, Gernot & Stronzik, Marcus & Wissner, Matthias, 2007. "Stromerzeugung und Stromvertrieb – eine wettbewerbsökonomische Analyse," WIK Discussion Papers 297, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    3. Mulder, Machiel & Schoonbeek, Lambert, 2013. "Decomposing changes in competition in the Dutch electricity market through the residual supply index," Energy Economics, Elsevier, vol. 39(C), pages 100-107.
    4. Stenzel, Till & Frenzel, Alexander, 2008. "Regulating technological change--The strategic reactions of utility companies towards subsidy policies in the German, Spanish and UK electricity markets," Energy Policy, Elsevier, vol. 36(7), pages 2645-2657, July.
    5. repec:dgr:rugsom:13003-eef is not listed on IDEAS
    6. Egil Ferkingstad & Anders L{o}land & Mathilde Wilhelmsen, 2011. "Causal modeling and inference for electricity markets," Papers 1110.5429, arXiv.org.
    7. Hulya Dagdeviren, 2009. "Limits To Competition And Regulation In Privatized Electricity Markets," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(4), pages 641-664, December.
    8. Brunekreeft Gert & Meyer Roland, 2016. "Anreizregulierung bei Stromverteilnetzen: Effizienz versus Investitionen," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 17(2), pages 172-187, July.
    9. Rafal Weron, 2006. "Modeling and Forecasting Electricity Loads and Prices: A Statistical Approach," HSC Books, Hugo Steinhaus Center, Wroclaw University of Technology, number hsbook0601, December.
    10. Weigt, Hannes, 2009. "A Review of Liberalization and Modeling of Electricity Markets," MPRA Paper 65651, University Library of Munich, Germany.
    11. Gert Brunekreeft & Roland Meyer, 2015. "Anreizregulierung bei Stromverteilnetzen: Effizienz versus Investitionen," Bremen Energy Working Papers 0021, Bremen Energy Research.
    12. Brunekreeft, G. & Bauknecht, D., 2005. "Energy policy and investment in the German power market," Discussion Paper 2005-031, Tilburg University, Tilburg Law and Economic Center.
    13. Ferkingstad, Egil & Løland, Anders & Wilhelmsen, Mathilde, 2011. "Causal modeling and inference for electricity markets," Energy Economics, Elsevier, vol. 33(3), pages 404-412, May.
    14. Wassermann, Sandra & Reeg, Matthias & Nienhaus, Kristina, 2015. "Current challenges of Germany’s energy transition project and competing strategies of challengers and incumbents: The case of direct marketing of electricity from renewable energy sources," Energy Policy, Elsevier, vol. 76(C), pages 66-75.

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    More about this item

    Keywords

    regulation; competition; emission trading; gas; electricity;
    All these keywords.

    JEL classification:

    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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