Between regulation and competition
| PhD ceremony: | Mr J. Keller |
| When: | December 16, 2021 |
| Start: | 11:00 |
| Supervisor: | prof. dr. M. (Machiel) Mulder |
| Co-supervisor: | dr. G.H. Kuper |
| Where: | Academy building RUG |
| Faculty: | Economics and Business |
This dissertation focuses on the research question: What is the impact of gas market mergers on the potential for inter-TSO competition within the EU? The intention for mergers of gas markets is to increase the functioning of gas wholesale markets to, ultimately, benefit end-customers with more competitive prices, and an enhanced security of supply. Additionally, the energy transition towards carbon neutrality may be supported. Gas transmission system networks are the backbone of these markets. As their operators are considered to be natural monopolies not facing effective competition, they are regulated to protect customers against abuse of market power, possibly leading to too high gas prices.
Market mergers can introduce transport alternatives. Therefore, the operators of transmission networks may not necessarily be considered as a monopolist anymore. Thus, more competition and less regulation may be possible, which is preferred due to a higher efficiency.
This dissertation finds that market mergers indeed may lead to competitive pressure on the operators of gas transmission networks. Furthermore, it is highlighted that competition between these regulated infrastructure operators is possible after some changes to the regulatory framework.