Essay from the year 2012 in the subject Business economics - General, grade: 2:1, De Montfort University Leicester, course: International Business and Globalisation, language: English, abstract: Consumers mainly benefited from the liberalisation of UK energy markets in the 1980s through privatisation under Thatcher, because of lower prices due to increased competition between rival energy firms. This is because instead of a single monopoly, competitive markets try and compete through price wars. The energy markets were monopolies in many EU countries and held dominant power in the energy market which is considered inefficient. The EU claim that Liberalisation of the energy markets will benefit consumers through; raising employment levels, increasing business efficiency and increasing a country's potential economic development and GDP growth. We therefore need to focus on the impact of Liberalisation on these key areas to assess how advantageous this increase in competition has on the energy market.
This book presents the first in-depth analysis of the export of the EU electricity acquis, through the imposition of an EU-type regional electricity market (REM) in SEE within the enlargement process. Among other germane issues, the author discusses the following: the suitability of the European model of electricity markets’ liberalization for economies in transition; the use of the Public Services Obligations (PSO) to address the impact of electricity markets liberalization; the use of regulated prices and measures for granting priority rights for cross-border capacity allocation as PSOs; the Court of Justice judgement in Federutility on the sustainability of states’ protection of their different types of customers, including the large businesses; the Energy Community as a step towards a Pan-European Energy Community; the effect of simultaneous national electricity markets liberalization and cross-border regional integration of national electricity markets; and, the interplay between liberalization policy and reforms and the regulatory tools available to address their impact on provision of public services. The author’s proposed rethinking of the public services obligation offers new views on using this tool more effectively and proposes possibilities for its practical implementation through measures such as energy efficiency, allocation of interconnectors’ capacity, transparency, addressing the affordability issue and the protection of vulnerable customers. The book is remarkable for its clear analysis of the policy lessons arising from the export of the idea of liberalized energy markets, and will be welcomed by practitioners, officials, academics and others in energy law and policy for its informative and forward-looking overview of the national and cross-border reforms in the Energy Community framework.
In this important book, notable European experts in the energy field provide valuable perspectives on the principal issues raised by the liberalisation of the electricity and natural gas markets in the EU. Lawyers, business people, regulators, and policymakers who deal with matters and issues in the energy, natural resources, and environmental fields will find the details and insights presented here of great value.
Making Energy Markets charts the emergence and early evolution of electricity markets in western Europe, covering the decade from the late 1980s to the late 1990s. Liberalising electricity marked a radical deviation from the established paradigm of state-controlled electricity systems which had become established across Europe after the Second World War. By studying early liberalisation processes in Britain and the Nordic region, and analysing the role of the EEC, the book shows that the creation of electricity markets involved political decisions about the feasibility and desirability of introducing competition into electricity supply industries. Competition introduced risks, so in designing the process politicians needed to evaluate who the likely winners and losers might be and the degree to which competition would impact key national industries reliant on cross-subsidies from the electricity sector, in particular coal mining, nuclear power and energy intensive production. The book discusses how an understanding of the origins of electricity markets and their political character can inform contemporary debates about renewables and low carbon energy transitions.
It is now almost twenty years since liberalisation and the introduction of competition was proposed for electricity utilities. Some form of restructuring has been widely adopted around the world to suit local objectives. The industry now faces new challenges associated with global warming, rising prices and escalating energy demand from developing countries like China and India. The industry will have to cope with; managing emissions; managing variable energy sources like wind, dev eloping clean coal technology; accommodating distributed generation and new nuclear stations and managing the impact of these developments on the distribution and transmission networks. It is now necessary to consider how the various market structures that were adopted have performed and how they will address some of these new issues and what further changes might be necessary. This volume presents an all-inclusive analysis of the electricity market structures that have been adopted around the world and how they are performing. It provides an up-to-date analysis of the cost of competing technologies, the operation of energy and ancillary service markets and the impact of renewable sources and emission restrictions. It takes a forward look at likely future developments necessary to cope with the new emerging issues. Part One introduces industry infrastructure, analysing state utilities, the motives behind liberalisation and the resulting structures. Part Two considers generation costs, including renewable generation costs, and investigates the cost of restricting emissions as well as transmission and distribution costs. Part Three discusses market operation, describing how costs affect the organisation of power generation. It covers trading arrangements, ancillary services, international trading and investment. Part Four looks to future markets and technological developments that will shape the industry through the next twenty years. This includes the appraisal of investment opportunities for global power companies and implications for market performance. Written by an internationally renowned consultant engineer, this book is full of expert insight and balances fundamental methodology and academic theory with practical information and diverse worked examples. This is an excellent reference on the topic for power system engineers, regulators, banks, investors, and government energy agencies. With its many worked examples, it is also a brilliant tutorial accessible for postgraduates and senior undergraduates in electrical and power engineering.
Based on a state-of-the-art detailed numerical simulation model, this volume presents an economic analysis of the main effects of liberalizing the electricity and natural gas markets across Western Europe.
How far can energy markets be free as well as competitive? What do low oil prices mean for the oil industry and other energy markets? How can economic efficiency in the energy industries be reconciled with environmental protection? How far is the UK model of liberalising electricity and gas industries being applied elsewhere in the world and how is it faring, at home and abroad? These are typical questions addressed in this collection of articles written by an international group of economists. Edited by the leaders of the two leading UK academic centres of energy economics, the book demonstrates how important the analysis of policy and regulatory frameworks has become for those interested in efficient energy and environmental outcomes./a
