Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1186
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Resource typeWorking Paper
Title(s)Associations Agreement and the Interest of the Network Suppliers - The Strategic Use of Structural Features
DOI10.48548/pubdata-1186
Handle20.500.14123/1249
CreatorWein, Thomas  0000-0001-7443-3253  170739767
AbstractThe EU electricity directive (96/92/EC) established the right of the member states to choose between Regulated and Negotiated Third Party Access (RTPA and NTPA). The interest group theory is able to explain whether the introduction of NTPA in Germany had been an interest group equilibrium under the restriction of EU-directive. Using the NTPA associations of electricity power suppliers, network monopolists and industrial consumers negotiated three agreements. The last one (AA VVII+) in December 2001 introduced a market comparison scheme with three structural features: “East-/West-Germany”, “consumption/population density”, and “cable rate”. These features are variables which are supposed to reflect cost differences between network suppliers. The theoretical analysis will derive the hypothesis that this conception allows to introduce a cost irrelevant factor and therefore to increase prices without harming firms which do not hold this factor. This hypothesis could be tested by analyzing the German low and medium voltage network suppliers in 2002 and 2003. Our estimations show that the use of structural feature “East-/West Germany” and “consumption/population density” could be explained by this hypothesis. But because we have no firm specific information about cost differences other explanations could not be excluded: Monopoly prices differ with marginal costs, and regulation could reflect real cost differences. The third structural feature “cable rate” has no influence in low voltage networks, but has an impact on access charges levied in medium voltage networks. This relationship is only given if we use the borderlines given by AA VVII+. Hence, we are not able to reject the interest group theory: The feature “cable rate” was introduced successfully to increase access charges for medium network suppliers which have high cable rates without having higher costs.
LanguageEnglish
KeywordsDeregulation; Monopoly; Interest Group; Regulierung; Monopol; Interessenverband; Netzbetreiber
DDC330 :: Wirtschaft
Year of publication in PubData2005
Publishing typeFirst publication
Publication versionPublished version
Date issued2005-07-06
Creation contextResearch
Faculty / departmentFrühere Fachbereiche
Series title and numberWorking paper series in economics
7
Alternative Idenfier(s)urn:nbn:de:gbv:luen4-opus-3115
Date of Availability2024-08-23T07:46:13Z
Archiving Facility Medien- und Informationszentrum (Leuphana Universität Lüneburg  02w2y2t16)
Published byMedien- und Informationszentrum, Leuphana Universität Lüneburg
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