NEWS

Energy Economics Workshop 23 April 2009, The Hague

Liberalization of the gas market: prices and investments, (Registration).

EU ENERGY BLOG

Market Power Mitigation By Regulating Contract Portfolio Risk

Until now, the European Union has relied on standard competition rules to deal with abuse of market power in the generation sector. We argue that relying only on general competition rules is insufficient to address those concerns, given the specific characteristics of the electricity market and the high level of concentration in some segments. As a complementary ex ante regulation, we suggest regulators should incentivize firms to sign contracts with retailers by regulating their contract portfolio risk exposure, i.e. a capital adequacy requirement should be imposed.
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