What’s Happening to the European Electricity Market?

[Abstract] This paper deals with market power and information issues in the ongoing process of the European Electricity Market. We present a regulatory game played among the key group of utilities, the customers and the regulatory authority. The development of the game allows us to state for a clear commitment to entry freedom reducing the informational strategic advantage of incumbents. As the assumption of such a commitment involves another game, we develop it and we conclude that the liberalisation of entry is also a key factor for credibility and effectiveness of flexible regulation and tariffs reduction as well

The European Electricity Market Reconsidered: Liberalization and Integration "versus" Concentration and Dominance

[Resumen] Este trabajo se ocupa de las cuestiones sobre el poder de mercado y la información en el proceso de creación del Mercado Europeo de la Electricidad. La experiencia internacional se analiza y reconsidera de acuerdo con la encuesta más reciente sobre aspectos críticos del mercado eléctrico. El campo de análisis se amplía para mostrar que el poder de mercado no está solamente conectado con la concentración de activos, sino también con la libertad de entrada y la combinación de poder de mercado local, vertical y otros factores clave como las restricciones de red y la capacidad de interconexión.[Abstract] This work deals with issues of market power and information in the process of creation of the European electricity market. International experience discusses and reconsiders according to the latest survey on critical aspects of the electricity market. The field of analysis expands to show that market power is not only connected with the concentration of assets, but also with the freedom of entry and a combination of market local power and other key factors as network restrictions and interconnection capacit