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Regulierung des Netzmonopolisten durch Verbot von Peak-load Pricing?

Author

Listed:
  • Jens Korunig

    (Institute of Economics, University of Lüneburg)

Abstract

Peak-load pricing of natural monopolies was analyzed until now as a one-step production process with constant average rate costs. However, electric current underlies a multi-step process with decreasing average costs for power transmission. A private, vertically separated network opertor will charge profit maximizing peak-load prices and will cause a high welfare loss due to its monopolisic position. The paper examines in a two-stage model with decreasing average cost on the transmission stage, which consequences there are of prohibiting the monopolist to take different prices. Here, this interdiction enhances welfare, if the monopolist continues to serve customers in both markets (peak and off-peak). The analyzed regulation rule "only one price" is easy to apply and to supervise, as a consequence it is practicable and cost-effecitve.

Suggested Citation

  • Jens Korunig, 2007. "Regulierung des Netzmonopolisten durch Verbot von Peak-load Pricing?," Working Paper Series in Economics 36, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:36
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    References listed on IDEAS

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