Transmission Networks in Electricity Competition: Third-Party Access and Unbundling – A Transatlantic Perspective
Read Ignacio Herrera Anchustegui's new paper on transmission networks
Competition and competitiveness in energy markets is not a novel idea. However, until not that recently, electricity markets were dominated by a single monopoly company that produced, transmitted, distributed and sold to end consumer powers. This meant that markets were national, not necessarily efficient, users of electricity had little or no options to chose suppliers and there was no competition. To remedy this and with the aim to reduce electricity prices, improve innovation, promote the production of renewable electricity and give consumers choice, legislators 'opened' electricity markets to competition. In this paper I discuss what has been the role of the law to create effective competition in electricity markets by regulating the access to transmission networks (a natural monopoly) and imposing control rules (unbundling) over this assets both in Europe and the US.
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Read the full and openly accessible paper here