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The NOME Law: Implications for the French Electricity Market

Pouyet, Jérôme; Sanin, María-Eugenia; Creti, Anna (2013), The NOME Law: Implications for the French Electricity Market, Journal of Regulatory Economics, 43, 2, p. 196-213. http://dx.doi.org/10.1007/s11149-012-9206-3

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Type
Article accepté pour publication ou publié
Date
2013-04
Journal name
Journal of Regulatory Economics
Volume
43
Number
2
Publisher
Springer
Pages
196-213
Publication identifier
http://dx.doi.org/10.1007/s11149-012-9206-3
Metadata
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Author(s)
Pouyet, Jérôme

Sanin, María-Eugenia

Creti, Anna
Abstract (EN)
The French law "Nouvelle Organisation du Marché de l'Electricité" makes available, at a regulated price, withdrawal rights to source low-cost electricity production from nuclear plants owned by the incumbent. Downstream market retailers benefit from such a measure, up to a given amount fixed by the law, to compete on a level playing field with the historical supplier. Our analysis assesses whether this production release programme is likely to result in a lower retail price. We show that whether pro-competitive effects arise depends not only on the amount of the preassigned capacity but also on the rules used to allocate it to retailers.
Subjects / Keywords
Nome law; Retail competition; Electricity markets; France
JEL
L50 - General
D43 - Oligopoly and Other Forms of Market Imperfection
L94 - Electric Utilities

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