Chillin'Competition

“Price mechanisms must be put in place to correct the market when it proves incapable of setting a socially acceptable energy price, while allowing private operators to make necessary investments in the network“.

And a question: at what level does a price become socially unacceptable?

My gut feeling: when the market fails to serve all those customers whose reservation price is superior to the producers’ costs. But I suspect the author of this quote to envision something else.

Found in J. DELORS’ foreword to “Towards a European Energy Community: A Policy Proposal” drafted by Sami ANDOURA, Leigh HANCHER and Marc VAN DER WOUDE. Congratulations to them for putting together such a creative, and potentially controversial, policy report. The text of the report can be found hereafter.

Etud76-Energy-en

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