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ECN publication
Beslissen over energetische infrastructuur in een geliberaliseerde energiemarkt
Published by: Publication date:
ECN Policy Studies 1999
ECN report number: Document type:
ECN-I--99-007 ECN publication
Number of pages: Full text:
32 Download PDF  

The new Electricity Law 1998 has started off liberalisation of the Dutchenergy market. Both in this new Electricity Law and in the new Gas Law (expected in 1999), the market will be liberalised in phases. The electricity market will be organised on the basis of regulated third party access (TPA), supporting free competition among suppliers. The gas market will be organised on the basis of negotiated TPA, which would retain market barriers for new entrants, and thus could hinder free competition. The market for hot water supply will not be liberalised in the near future: the current suppliers will retain their monopoly position. This report analyses the future situation concerning the construction of new energy infrastructure, with a focus on new building locations. For the development of new building locations, local governments will most probably have to define a so-called 'energy vision' which specifies the ambitions and requirements for that certain location regarding security of supply, sustainability and efficiency. Construction of energy infrastructure for these new building locations will probably be issued through a tendering procedure, for which all existing energy companies as well as new market actors could apply. The report sketches the economic and legal perspective within which energy companies should operate in the future Dutch energy market. An analysis is made of future opportunities and threats for different functions of the energy companies. The liberalisation process leads to newly required strategies of the different actors operating in the energy market. Energy companies have to reconsider their position in the market and pro-actively react on market developments. Their market position will not only be threatened by existing competitors, but also by new market entrants, market alternatives (substitutes) and consumers and suppliers that have acquired a stronger negotiating position. A new opportunity for energy companies could be to combine their supply activities with services such as selling or renting energy appliances. This would strengthen their relation with individual clients and could increase their business margin. Mono-gas companies or smaller integrated companies could form strategic alliances with larger integrated companies to strengthen their position. Another interesting possibility for smaller integrated companies would be to concentrate on all electric options and the use of local CHP plants. Larger integrated companies have the advantage of a large customer database and their broad scope of activities: they often combine the supply of energy with water, waste and telecommunication activities. Companies operating on the electricity market could also opt to deliver brand products such as green electricity, which distinguishes them from their competitors. 12 refs.

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