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Model of EC natural gas integration: Will it work?

✍ Scribed by Ronald J. Hopper


Publisher
Elsevier Science
Year
1990
Tongue
English
Weight
943 KB
Volume
1
Category
Article
ISSN
0957-1787

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✦ Synopsis


This paper describes a model for an integrated natural gas market and discusses the potential application of the model to the EC gas ind~try. The key to integration of the natural gas market is some form of open access contract carriage system that provides for accessible market entry and equal market opportunity for ail market players. These two ingredients will allow the driving force of an integrated gas marketmarket signal transparency -to function effectively. However, market signal transparency is only possible with some form of regulatory oversight which will ensure a uniform rate structure and non-d~criminatory access. Market signal tra~paren~y also requires unbundling of merchant services and price tra~parency. These ingredients will allow market forces to encourage eficiency and bring about competitive prices. A number of concerns have been raised about the viability of an open access programme in Europe, including security of supply and protection of small consumers. An analysis of these concerns reveals that security of supply will be improved with an open access programme through enhanced supply source development, diversity of supply and dual fuel capability. Small co~umers will benefit from lower prices while obtaining incre~ed reliability of supply.


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