PubData Leuphana Repository: The Difficulty to Behave as a (regulated) Natural Monopolist – The Dynamics of Electricity Network Access Charges in Germany 2002 to 2005

Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1267

Resource type	Working Paper
Title(s)	The Difficulty to Behave as a (regulated) Natural Monopolist – The Dynamics of Electricity Network Access Charges in Germany 2002 to 2005
DOI	10.48548/pubdata-1267
Handle	20.500.14123/1330
Creator	Wein, Thomas 0000-0001-7443-3253 170739767 Wetzel, Heike 0000-0002-3945-6318 1051421292
Abstract	Reviewing the development of network access charges in the German electricity market since 2002 reveals significant variation. While some firms continually increased or decreased their access charges, a variety of firms exhibited discontinuous behavior with price changes in both directions. From an economic viewpoint this price setting turbulence is astonishing because grid operators are non-contestable natural monopolists, which in this time period were regulated by Negotiated Third Party Access (NTPA). Depending on the effectiveness or ineffectiveness of NTPA, expected behavior would be either regulated average cost prices or monopoly prices, but not the observed turbulence. Although in 2005 NTPA scheme was replaced by a Regulated Third Party Access (RTPA) scheme with a regulator, an analysis of the factors influencing the price setting behavior within this period offers valuable information for the new regulator and the still discussed new incentive regulation, which is expected to start in 2009. Using multivariate estimations based on firm data covering the years 2000-2005, we test the hypotheses that asymmetric influence of regulatory threat, different cost and price calculation knowledge, strategic use of structural features and the obligation to publish specific access charges have influenced the electricity network access charges in Germany.
Language	English
Keywords	Deregulation; Monopoly; Power Industry; Deregulierung; Monopol; Energiewirtschaft
Year of publication in PubData	2007
Publishing type	First publication
Publication version	Published version
Date issued	2007-09-24
Creation context	Research
Published by	Medien- und Informationszentrum, Leuphana Universität Lüneburg
Related resources	Relations of this publication Relations of this publication