Competition, Contracts and Electricity Markets: A New Perspective (Eds. J.M. Glachant, D. Finon and A. de Hauteclocque) - Book Review
Article from: OGEL 5 (2011), in Book Reviews and Related Material
Introduction
The EU in the era of pre-California, pre-Enron and other market related failures believed strongly that economic theories of free markets would apply to energy markets. Essentially, “e nergy will respond to the economic rules of the market, going where the prices are highest; its use, substitution and investments responding to prices.” To deliver this, long-term contracts and strong vertical integration had to be eliminated as these prevented entry of potentially more efficient competitors and, hence, the emergence of a competitive market. When things did not progress as ...