Toward a new electricity market model: Competition issues raised by the come back of long term contracts in electricity markets

Abstract

INTRODUCTION AND OBJECTIVES

Long term contracts have been put forward in the recent reform from the European Commission as a tool facilitating investment in the energy transition, as well as enhancing hedging opportunities for end consumers.

This is a substantial change from the approach in the early years of liberalisation, when many regulatory and competition authorities considered that long-term contracts for the supply of electricity should be restricted because of their potential to prevent the development of effective competition.

The breakfast will bring together lawyers and economists to analyse this change in approach towards long term contracts in the light of the new context in electricity markets, and in particular the substantial investment needs in the energy transition.

The speakers will present recent research in which they argue that the historical approach adopted by the European Commission to assess the potential competitive effects of long-term contracts in the electricity industry needs to be revisited in the light of this new context.