Amundsen, Eirik S.; Bergman, Lars --- "The Deregulated Electricity Markets in Norway and Sweden: A Tentative Assessment" [2003] ELECD 47; in Glachant, Jean-Michael; Finon, Dominique (eds), "Competition in European Electricity Markets" (Edward Elgar Publishing, 2003)

Book Title: Competition in European Electricity Markets

Editor(s): Glachant, Jean-Michael; Finon, Dominique

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843761785

Section: Chapter 5

Section Title: The Deregulated Electricity Markets in Norway and Sweden: A Tentative Assessment

Author(s): Amundsen, Eirik S.; Bergman, Lars

Number of pages: 23

Extract:

5. The deregulated electricity markets
in Norway and Sweden: a tentative
assessment
Eirik S. Amundsen and Lars Bergman

INTRODUCTION1

In February 1999 the EU electricity market directive became effective. This
was a major step towards a single market for electricity in Europe, and
implied significant changes in electricity market institutions in most EU
member states (Bergman et al., 1999). However, already at the beginning of
the 1990s major electricity market reforms were implemented in the UK
(England and Wales) and Norway. Furthermore, in 1996, a similar reform
was implemented in Sweden and since then, there is an integrated
Norwegian-Swedish2 electricity market. The common thrust of this process
is that national electricity markets that historically have been subject to
detailed regulation are being transformed to markets where prices are
determined by the interplay of supply and demand, and where competition
and international trade are key features. In spite of these basic common ele-
ments, however, competitive electricity markets can be designed in many
different ways. This is illustrated by the significant institutional differences
between the former electricity market in England and Wales and the
Norwegian-Swedish electricity market. There are also some important
differences between Norway and Sweden with respect to electricity market
design.
The purpose of this paper is to briefly describe the design and function-
ing of the Norwegian­Swedish, in the following called the `Nordic',
electricity market, and to make a preliminary evaluation of the experiences
accumulated so far. Needless to say the design and organization of ...