Electricity Reform in Europe

'. . . this volume comes across as one of the most profound sources on the specifics of European electricity market restructuring.' -- Christof Duthaler, Competition and Regulation in Network Industries 'The SESSA study on the Internal Energy Market was an important and influential contribution towards the Commission's proposal for a third package of proposals, intending to bring more effective competition and better security of supply to Europe's energy markets. This volume, based on the results of the study is an important and welcome contribution to the ongoing debate on these proposals.' -- Andris Piebalgs, Commissioner for Energy at the European Commission 'The chapters in this book are written by the leading European scholars who have studied the structure, behavior and performance of liberalised electricity markets in many European countries as well as in other regions of the world. Both the analyses and the policy recommendations contained in this volume are well worth careful consideration by policymakers in Europe, as well as by policymakers in other countries that are seeking to adopt successful electricity sector liberalisation programs.' -- From the foreword by Paul L. Joskow, Massachusetts Institute of Technology, US 'Dynamism or dissipation? Competition or national champions? Will enlargement promote or delay reform? Energy economists contemplate the challenges posed by the "restless and discontent" European Commission.' -- Stephen Littlechild, University of Birmingham and Judge Institute for Management Studies, University of Cambridge, UK

Edited by Jean-Michel Glachant, Holder of the Loyola de Palacio Chair on EU Energy Policy and Director, Florence School of Regulation, European University Institute, Italy and Franois Lvque, Professor of Law and Economics, cole des mines de Paris, France

Contents: Foreword: US vs EU Electricity Reforms Achievement Paul L. Joskow PART I: PROPOSALS FOR ACHIEVING THE EUROPEAN UNION ELECTRICITY MARKET BY 2009 1. The Electricity Internal Market in the European Union: What to do Next? Jean-Michel Glachant and Franois Lvque PART II: ASSESSMENT OF CORE ISSUES IN THE MAKING OF THE EUROPEAN UNION ELECTRICITY MARKET 2. Refining Market Design David Newbery 3. Addressing Market Power and Industry Restructuring Lars Bergman 4. Harmonizing an Effective Regulation in Europe Einar Hope and Balbir Singh 5. Ensuring EU Enlargement to New Member States Christian Von Hirchhausen and Georg Zachmann 6. Investing for Sustainability Ignacio Prez-Arriaga and Julin Barqun 7. Policy Assessment and Good Practices Richard Green, Arturo Lorenzoni, Yannick Prez and Michael Pollitt PART III: IN-DEPTH STUDIES OF THREE CHALLENGES FOR THE EUROPEAN UNION ELECTRICITY MARKET (MEASURING MARKET POWER, CONVERGENCE OF WHOLESALE PRICES AND ENERGY POLICY) 8. How Well Can One Measure Market Power in Restructured Electricity Systems? Yves Smeers 9. The EU Integration of the New Member States Electricity Markets Testing for Wholesale Price Convergence Using the Kalman Filter Georg Zachmann 10. Long-Term Scenarios for the Strategic Energy Policy of the EU Pantelis Capros and Leonidas Mantzos Postface: Design and Regulation of EU Energy Markets Between Competition Policy and Common Energy Policy Jorge Vasconcelos Index