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how will the new eu energy legislation affect investments in infrastructure?

How Will the New EU Energy Legislation Affect Investments in Infrastructure?
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Knops, H.P.A.; H.M. de Jong, and L.J. de Vries: How Will the New EU Energy Legislation Affect Investments in Infrastructure?, pp. 1-18. In: Proceedings of the 32nd IAEE International Conference “Energy, Economy, Environment: the Global View”, June 21-24, (2009). At: San Francisco, USA. San Francisco: IAEE, 2009. Eds.: O. Iledare.

Hanneke de Jong
Hamilcar Knops
Laurens de Vries

In this paper we try to assess whether the current and the proposed European legal regime for the electricity sector are adequate to ensure the long-term ability of the network (‘transport adequacy’). For this assessment of the legal regime we use the ‘function-based legal design & analysis’ (FULDA) method (Knops, 2008). We perform an ex ante analysis of the regulatory framework of the function of transport adequacy, which forms a test of the utility of the FULDA method for analysis. Then, we present an assessment of both the current EU legal regime and the pending legislative proposals with respect to transport adequacy. This involves an assessment of the respective responsibilities of the network operator and the network owner, their relation, and the regulation of the income of the network firms in relation to investments. Moreover, we will assess to what extent the proposed legislation would bring about the much needed international cooperation between network operators with respect to network planning. Based upon our analysis we suggest improvements of the legal framework.

For a copy of this paper, please contact Hamilcar Knops


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