Competition And The Regulation Of Utilities

companies to diversify may outweigh the costs of doing so, and that some traditional regulatory concerns may be excessively restrictive. The papers by Hillman, Harris, and Jang and Norsworthy, while all relating to individual industries, have lessons for other regulated industries. Hillman's paper, "Oil Pipeline Rates: A Case for Yardstick Regulation," deals with the important topic of yardstick regulation for oil pipelines. While his application is highly specific, the potential application of yardstick regulation goes beyond oil pipelines. He reviews the evolution in the law regulating oil pipelines. While showing that some progress has been made in introducing economic efficiency considerations into regulation, he provides a careful critique of the operation of existing regulation and suggests an alternative based upon a yardstick approach. His approach seeks to use competitive market prices as the yardstick, with administration of price discrimination limited to dealing with possible "favoritism" to subsidiaries and affiliates. "Telecommunications Services as a Strategic Industry: Implications for United States Public Policy" by Harris and "Productivity Growth and Technical Change in the United States Telecommunications Equipment Manufacturing Industries" by Jang and Norsworthy provide important insights for telecommunications.

. . . a treasure trove of valuable insight and commentary into the utility markets and how they are, and should be, regulated. European Competition Law Review Regulating Utilities and Promoting Competition continues the series of annual books, published in association with the Institute of Economic Affairs and the London Business School, which critically review the state of utility regulation and competition policy. With contributions by some of the leading figures in the field, this important new book presents incisive chapters on a number of prominent topics. These include, amongst others, the future of the railways, the international trade in gas, the economics and politics of wind power and the role of economics in merger reviews. A key feature of the book is the careful examination of fundamental issues, not only from the viewpoint of academic and other independent commentators, but also by the regulators and heads of competition authorities themselves. By addressing significant developments both in Britain and abroad, the authors draw important lessons about the policy changes needed as well as their subsequent implementation. This book will be of great value to practitioners, policymakers and academics alike who are concerned with regulation, deregulation and policies to promote competition.

'The regulatory essays do not focus exclusively on the UK energy industry. There is an excellent review of progress in opening European electricity and gas markets, which hints at further reforms that have occurred since the book was published. There are also fine reviews of regulatory developments and competition policy in telecommunications, railroads, and water supply. In short, there is probably something of interest here for any serious energy professional or student of regulatory economics.' - Jeff Skeer, The Journal of Energy and Development In this book, the latest volume in the annual series published in assocation with the London Business School and the Institute of Economic Affairs, some of the main issues in UK and EU utility regulation and competition policy are discussed. Topics examined include the new electricity and gas trading markets, regulating the railways, introducing competition into water, telecoms and Ofcom, opening EU gas and electricity markets, the 1998 Competition Act, EU merger policy and a general review of privatisation and regulation in Britain. Essays by expert commentators are followed in each case by comments from the relevant regulator.

The book is written by a group of academic researchers and practitioners and, as such, provides insightful analyses from both theoretical as well as practical perspectives. It will be of value to policymakers, industry stakeholders, and regulators who are interested in utility regulation and policies to foster a competitive market environment. International Energy Law and Taxation Review Governments, Competition and Utility Regulation continues the series of annual books, published in association with the Institute of Economic Affairs and the London Business School, which critically reviews the state of utility regulation and competition policy. The book contains incisive chapters on competition policy and trade, antitrust and consumer welfare, merger control and efficiency, emissions trading, Ofcom and convergence, energy regulation and competition, regulating the London Underground, the future of water regulation and European merger control. Chapters on each topic are followed by comments from regulators, competition authority chairmen and other experts in the relevant fields. The book provides analysis of and commentaries on the most significant developments in regulation and competition policy, drawing on experiences in Britain, the United States and the European Union, as well as in international trade negotiations. It will be of value to practitioners, policymakers and academics who are concerned with regulation, deregulation and policies to promote competition.

This book addresses the fundamental issues underlying the debate over electric power regulation and deregulation. After decades of the presumption that the electric power industry was a natural monopoly, recent times have seen a trend of deregulation followed by panicked re-regulation.

Featuring an original introduction by the editors, these carefully-selected essays explore the main issues surrounding competition and regulation in electricity markets. The industry is experiencing irresistible forces of change, driven by energy policy objectives; a reassessment of market regulation in the face of high-energy prices; and the response to consumer pressure to agree on what constitutes a fair price for energy. This volume identifies the key articles that underpin the debate across the industries supply chain (generation, supply and networks) from a regulatory perspective (including market power and incentive regulation). The collection then considers the overall impact of liberalisation and future developments.

Recent years have seen a major growth in the European law concerning the operation of the energy industry, especially with respect to electricity and gas. Several directives have been adopted that are aimed at the promotion of competition in this key sector of the European economy. At thesame time, the jurisprudence of the European Court had developed further on matters such as access to networks, import and export monopolies and security of supply.In this book the authors examine the principal legislation, Treaty provisions and decisions of the Court of Justice and Court of First Instance of the EU as they related to the promotion of competition in European energy markets. In particular, two chapters are devoted to a detailed analysis of theprovisions of the two directives that set out common rules for the creation of an internal market in the electricity and gas sectors. In each case, the analysis is set in the context of the various programmes of energy market liberalization and privatization in the Member States, which aresummarized in this book. However, the authors also take the wider pan-European context into account, explaining the requirements and the implications of the European Economic Area Agreement, the Energy Charter Treaty and the Europe Agreements with countries of Central and Eastern Europe.The approach adopted by the authors is both analytical and historical. They locate the legislation in the context of the EU Internal Market programme that began in the late 1980s and explain the roles played by the various parties (energy industries, consumers and EU institutions) in shaping thefinal legislation. Importantly, they explain how the framework character of the energy directives has led to further important rule-making in the implementation of the directives across the EU. They conclude that a co-ordinated response between the European Commission and the national regulatorswill be essential to resolve problems arising in the transition to a competitive energy market in the EU.