The influence of vertical integration and property rights on network access charges in the German electricity market

Research output: Journal contributionsScientific review articlesResearch

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After the deregulation of the German electricity markets, network access charges are based on contractual arrangements between energy producers and industrial consumers. As the electricity networks are incontestable natural monopolies, the operators are able to set (monopolistic) charges at their own discretion, restricted only by possible cartel office interferences. Estimations show a relation between network access charges and operator's economic independence as well as level of vertical integration: on the low voltage level for an annual consumption of 1700 kW/h, vertically integrated firms set significantly lower access charges than vertically separated suppliers, whereas incorporated network operators charge significantly higher charges.

Original languageEnglish
JournalJahrbücher für Nationalökonomie und Statistik
Volume224
Issue number6
Pages (from-to)673-695
Number of pages23
ISSN0021-4027
DOIs
Publication statusPublished - 01.11.2004

    Research areas

  • Economics - network access charges, deregulation, electricity market
  • Deregulation, Electricity market, Network access charges

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