Are safety and security of gas supply compatible with: the opening of the market to competition?
Pinon, Jean Paul
Are safety and security of gas supply compatible with: the opening of the market to competition? - 5 p.
Disponible en CD en formato PDF
Transcripción del abstract original del autor: While safety standards aiming to prevent energy related accidents are fixed by the government irrespective of the market organisation, the security of supply level may strongly be influenced by the introduction of competition into the gas market. Safety standards should still be guaranteed by grid operators and controlled by the public authorities, and the market regulators have to establish the proper financing mechanisms. The level of security of supply for large consumers, on the other hand, relies more and more on the individual trade-off between the offered reliability levels and the price of providing these guarantees. This market-driven provision of individual security of supply levels generates more efficiency and even improves overall security of supply, at least if an appropriate regulatory regime is applied. Specific regulation in the form of ‘public service obligations’, remains necessary to assure continuity of supply tor the residential sector It is argued that (i) market opening as such forms no threat for safety; according to the chosen tariff system for services offered by the grid operators, technical control of the facilities may become more of less crucial, (ii) the standards are likely to be achieved at lower costs and (iii) the commercialisation of security may emerge but this will ask for an appropriate framework of public service obligations.
CD I249 1 0013788
Are safety and security of gas supply compatible with: the opening of the market to competition? - 5 p.
Disponible en CD en formato PDF
Transcripción del abstract original del autor: While safety standards aiming to prevent energy related accidents are fixed by the government irrespective of the market organisation, the security of supply level may strongly be influenced by the introduction of competition into the gas market. Safety standards should still be guaranteed by grid operators and controlled by the public authorities, and the market regulators have to establish the proper financing mechanisms. The level of security of supply for large consumers, on the other hand, relies more and more on the individual trade-off between the offered reliability levels and the price of providing these guarantees. This market-driven provision of individual security of supply levels generates more efficiency and even improves overall security of supply, at least if an appropriate regulatory regime is applied. Specific regulation in the form of ‘public service obligations’, remains necessary to assure continuity of supply tor the residential sector It is argued that (i) market opening as such forms no threat for safety; according to the chosen tariff system for services offered by the grid operators, technical control of the facilities may become more of less crucial, (ii) the standards are likely to be achieved at lower costs and (iii) the commercialisation of security may emerge but this will ask for an appropriate framework of public service obligations.
CD I249 1 0013788
