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Ownership unbundling in electricity distribution: The case of The Netherlands

✍ Scribed by Rolf Künneke; Theo Fens

Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
236 KB
Volume
35
Category
Article
ISSN
0301-4215

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✦ Synopsis

This paper addresses the merits of ownership unbundling of distribution networks, as exemplified in the case of The Netherlands. In essence, this problem concerns the question of whether the operation and management of electricity distribution networks in this country will evolve into a market-driven commodity business or remain a genuine public utility task. In order to deal with this problem, a framework is developed that enables the classification of different institutional regimes. Depending on the nature of the institutional regime, this case of the Netherlands illustrates how certain aspects of the liberalisation of the electricity sector can become vitally important to the continuing process of restructuring.

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In Machiavelli's theory of power, the concept of 'divide and rule' forms the main theme: the ruler has absolute power and to maintain and increase such power all means are justified. When viewed against the background of this theory, the current debate in the Netherlands on the unbundling of energy