The 2014 and 2017-18 “polar vortex” events in New England served as virtual controlled experiments on how competitive natural gas and electricity markets coexist uneasily almost two decades after different kinds of regulatory restructuring initiatives freed different kinds of competitive forces to support the supply infrastructure in each energy market. As a region with no…
Tag: Transaction costs
Designing the European Gas Market: More Liquid & Less Natural?
Designing a gas market is defining how the commodity, the transmission and ancillary services are traded. The European Union has built the commoditization of natural gas through the socialization of several costs of trade. This choice aims at obtaining more liquid markets through the creation of virtual hubs of trade. These virtual hubs ignore most…