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The NOME Law: Implications for the French Electricity Market

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Date
2013-04
Dewey
Economie industrielle
Sujet
Nome law; Retail competition; Electricity markets; France
JEL code
L50; D43; L94
Journal issue
Journal of Regulatory Economics
Volume
43
Number
2
Publication date
04-2013
Article pages
196-213
Publisher
Springer
DOI
http://dx.doi.org/10.1007/s11149-012-9206-3
URI
https://basepub.dauphine.fr/handle/123456789/12068
Collections
  • LEDa : Publications
Metadata
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Author
Pouyet, Jérôme
Sanin, María-Eugenia
Creti, Anna
Type
Article accepté pour publication ou publié
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.

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