EPRG 0816

Gert Brunekreeft

Ownership Unbundling in Electricity Markets – A Social Cost Benefit Analysis of the German TSOs

EPRG 0816 Non-Technical Summary | PDF

Abstract: This paper presents a social cost benefit analysis of ownership unbundling (as compared to legal und functional unbundling) of the electricity transmission system operators in Germany. The study relies on the Residual Supply Index for its competitive concept. The analysis models some 15 effects, grouped in three categories: the competition effect, the interconnector effect and the cost effect. Facing a looming capacity shortage, we find that the total available generation capacity and the effect of unbundling on capacity are of crucial importance. Overall, for the base-case, the net weighted discounted social-cost-benefit effect (weighted-?SCB) is likely to be positive, but small.

Keywords: unbundling, electricity, networks, regulation, competition

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