Artículo de revista
The competitive role of the transmission system in price-regulated power industries
Fecha
2008-07Registro en:
ENERGY ECONOMICS Volume: 30 Issue: 4 Pages: 1568-1576 Published: JUL 2008
0140-9883
10.1016/j.eneco.2007.02.009
Autor
Arellano Schmidt, María Soledad
Serra Banfi, Pablo
Institución
Resumen
This note shows how the transmission system can enhance competition in price-regulated power industries, thus extending earlier findings reported in the literature for deregulated industries. In the context of a two-technology, price-regulated power industry, we show that the interconnection of two markets initially supplied by a different monopoly reduces market power and raises welfare. We also show that the capacity of the transmission line plays a key role in determining whether market equilibrium lies closer to competition or monopoly.