Non-Discriminatory Energy System Operation: What Does It Mean?

H. Kruimer

Competition and Regulation in Network Industries, 2011, vol. 12, issue 3, 260-287

Abstract: This paper is concerned with non-discriminatory operation of energy systems and the questions of i. what discrimination in this context means, ii. what are the characteristics that distinguish system user A from system user B, and iii. whether distinctions between system users mean system users are dissimilar hence justifying differences in treatment towards them. It is argued that the non-discrimination obligation for energy system operators aims at providing the basis and the fundament upon which competition on equal terms among gas and electricity suppliers is to develop. This means that the way system operators operate their networks should facilitate competition between system users e.g. suppliers, traders, and generators/producers. Consequently, non-discriminatory system operation aims at equality of system users to the extent necessary to achieve this. This means that the non-discrimination obligation for energy system operators does not strive to reach absolute equality of system users. This paper concludes that system users differ in many ways e.g. the way they use the system, their company (risk) profile, the quality and origin of the gas/electricity they transport, and the point of time, type and amount of their system service request. These differences can both be used to demonstrate that system users should not be treated the same because they are i. not similar in the first place or ii. are not in an analogous situation. These factors cannot be used as objective justification grounds given that the EU Court only accepts justification grounds explicitly mentioned in the Directives and Regulations.

Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:sen:journl:v:12:i:3:y:2011:p:260-287

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