Competition Law in the Energy Sector
Expert-defined terms from the Specialist Certification in EU Energy Law course at London School of Business and Administration. Free to read, free to share, paired with a professional course.
Abuse of Dominant Position refers to a situation where a company with a dominant… #
This concept is closely related to the idea of market power and can have significant implications for companies operating in the energy sector, where large players may have significant influence over the market. For example, a company with a dominant position in the natural gas market may use its power to set prices that are detrimental to smaller competitors.
Access to Infrastructure is a critical concept in the energy sector, as it refer… #
This can be a significant challenge for new entrants to the market, as they may not have the same level of access to infrastructure as established players. The concept of third-party access is often used to describe the right of companies to access infrastructure on a non-discriminatory basis.
Agency for the Cooperation of Energy Regulators (ACER) is an EU agency that play… #
ACER is responsible for promoting the integration of European energy markets and ensuring that national regulators are working together effectively to achieve this goal. The agency has a range of powers, including the ability to monitor the activities of national regulators and to investigate potential breaches of EU law.
Alternative Dispute Resolution (ADR) refers to a range of techniques that can be… #
In the context of the energy sector, ADR can be a useful tool for resolving disputes between companies, or between companies and regulatory authorities. For example, mediation may be used to resolve a dispute between two companies over access to infrastructure.
Anti #
Competitive Agreements are agreements between companies that have the effect of restricting competition in the market. These agreements can take many forms, including price-fixing agreements, market-sharing agreements, and agreements to restrict output. In the energy sector, anti-competitive agreements can have significant implications for consumers, as they can lead to higher prices and reduced innovation. For example, a group of companies may agree to fix prices for a particular type of energy, such as electricity or natural gas.
Barriers to Entry are obstacles that make it difficult for new companies to ente… #
In the energy sector, barriers to entry can include high upfront costs, regulatory hurdles, and limited access to infrastructure. These barriers can make it difficult for new companies to compete with established players, and can limit the level of competition in the market. For example, a company may face significant regulatory barriers when trying to enter the electricity market, including the need to obtain licenses and permits.
Capacity Mechanisms are mechanisms that are used to ensure that there is suffici… #
These mechanisms can take many forms, including capacity auctions and capacity markets. In the EU, capacity mechanisms are subject to state aid rules, which are designed to prevent governments from providing unfair subsidies to companies.
Carbon Pricing is a mechanism that is used to put a price on carbon emissions, i… #
There are several different types of carbon pricing mechanisms, including carbon taxes and emissions trading systems. In the EU, the Emissions Trading System (EU ETS) is a key tool for reducing greenhouse gas emissions from the energy sector.
Competition Law is a body of law that is designed to promote competition in the… #
In the energy sector, competition law is used to prevent anti-competitive agreements, abuse of dominant position, and other practices that can restrict competition. The European Commission plays a key role in enforcing competition law in the EU, and has the power to investigate potential breaches of the law and to impose fines on companies that are found to have infringed the law.
Cross #
Border Trade is trade that takes place between different countries. In the energy sector, cross-border trade can be critical for ensuring the security of supply and promoting competition. The EU internal energy market is designed to facilitate cross-border trade in energy, by creating a single market for energy that spans the entire EU.
Demand Response is a mechanism that is used to manage demand for energy, by prov… #
This can be a critical tool for managing the energy system, as it can help to prevent blackouts and reduce the strain on the grid. For example, a company may offer time-of-use pricing to its customers, which provides a discount for consumption during off-peak hours.
Deregulation is the process of removing regulatory barriers and restrictions in… #
In the energy sector, deregulation can be used to promote competition and increase efficiency. However, it can also create challenges for regulatory authorities, as they must find new ways to ensure that the market is functioning properly.
Emissions Trading System (ETS) is a type of carbon pricing mechanism that is use… #
The EU ETS is a key tool for reducing emissions from the energy sector, and works by creating a cap on the total amount of emissions that can be produced by companies in the sector.
Energy Community is an international organization that is designed to promote th… #
The Energy Community has a range of objectives, including the creation of a single market for energy that spans the region.
Energy Efficiency is the process of reducing the amount of energy that is requir… #
In the energy sector, energy efficiency can be a critical tool for reducing greenhouse gas emissions and promoting sustainability. For example, a company may use energy-efficient technologies to reduce the amount of energy that is required to power a particular process.
Energy Market Integration is the process of creating a single market for energy… #
In the EU, energy market integration is a key objective of the European Commission, which is working to create a single market for energy that spans the entire EU.
Energy Regulation is the process of regulating the energy sector, in order to en… #
Energy regulation can take many forms, including the regulation of prices, the regulation of access to infrastructure, and the regulation of environmental impacts.
Environmental Impact Assessment (EIA) is a process that is used to assess the po… #
In the energy sector, EIA can be a critical tool for ensuring that new projects are designed and implemented in a way that minimizes their environmental impacts.
Exclusivity Clauses are clauses that are used to restrict the ability of compani… #
In the energy sector, exclusivity clauses can be used to restrict the ability of companies to access infrastructure or to purchase energy from other companies. For example, a company may agree to an exclusivity clause that requires it to purchase all of its energy from a particular supplier.
Fuel Poverty is a situation where a household is unable to afford to heat its ho… #
In the energy sector, fuel poverty can be a significant challenge, particularly in countries where energy prices are high and incomes are low.
Gas Transmission System is a system that is used to transport natural gas from t… #
In the EU, the gas transmission system is subject to regulation, in order to ensure that it is functioning properly and in the public interest.
Grid Connection is the process of connecting a new power plant or other energy f… #
In the energy sector, grid connection can be a critical challenge, particularly for renewable energy sources such as wind and solar power.
Hydrogen Fuel Cell is a type of energy technology that is used to generate elect… #
In the energy sector, hydrogen fuel cells can be a critical tool for reducing greenhouse gas emissions and promoting sustainability.
Independent System Operator (ISO) is an entity that is responsible for managing… #
In the energy sector, ISOs play a critical role in managing the flow of electricity and ensuring that the grid is stable and secure.
Infrastructure Investment is investment in the energy infrastructure, such as pi… #
In the energy sector, infrastructure investment can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Interconnector is a pipeline or transmission line that connects two or more coun… #
In the energy sector, interconnectors can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Investment Incentives are incentives that are used to encourage companies to inv… #
In the EU, investment incentives can take many forms, including grants and tax breaks.
Liquefied Natural Gas (LNG) is a type of natural gas that is liquefied for trans… #
In the energy sector, LNG can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Long #
Term Contracts are contracts that are used to purchase energy over a long period of time. In the energy sector, long-term contracts can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Market Abuse is a situation where a company engages in behavior that is designed… #
In the energy sector, market abuse can be a significant challenge, particularly in countries where regulatory authorities are weak or ineffective.
Market Liberalization is the process of removing regulatory barriers and restric… #
In the energy sector, market liberalization can be used to promote competition and increase efficiency.
Market Power is the ability of a company to influence the market price of a part… #
In the energy sector, market power can be a significant challenge, particularly for companies that have a dominant position in the market.
Network Code is a set of rules that govern the operation of the grid and the tra… #
In the energy sector, network codes can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Oil Stockpiling is the process of storing oil in anticipation of future demand #
In the energy sector, oil stockpiling can be a critical tool for promoting the security of supply and reducing the risk of price volatility.
Pipeline Transportation is the process of transporting oil or natural gas throug… #
In the energy sector, pipeline transportation can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Price Controls are mechanisms that are used to regulate the price of energy #
In the energy sector, price controls can be a significant challenge, particularly in countries where regulatory authorities are weak or ineffective.
Public Service Obligations (PSOs) are obligations that are imposed on companies… #
In the energy sector, PSOs can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Renewable Energy is energy that is generated from renewable sources, such as win… #
In the energy sector, renewable energy can be a critical tool for reducing greenhouse gas emissions and promoting sustainability.
Renewable Energy Targets are targets that are set by governments to promote the… #
In the EU, renewable energy targets are a key objective of the European Commission, which is working to promote the use of renewable energy and reduce greenhouse gas emissions.
Security of Supply is the ability of a country or region to ensure that it has a… #
In the energy sector, security of supply can be a significant challenge, particularly in countries where energy demand is high and supply is limited.
Smart Grid is a type of grid that uses advanced technologies to manage the flow… #
In the energy sector, smart grids can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
State Aid is assistance that is provided by governments to companies, often in t… #
In the energy sector, state aid can be a significant challenge, particularly in countries where regulatory authorities are weak or ineffective.
Storage Facilities are facilities that are used to store energy, such as oil, na… #
In the energy sector, storage facilities can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Subsidies are payments that are made by governments to companies, often to promo… #
In the energy sector, subsidies can be a significant challenge, particularly in countries where regulatory authorities are weak or ineffective.
Sustainability is the ability of a company or country to meet its energy needs i… #
In the energy sector, sustainability can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Third #
Party Access (TPA) is the right of companies to access infrastructure, such as pipelines and transmission lines, on a non-discriminatory basis. In the energy sector, TPA can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Transmission System is a system that is used to transmit electricity from the po… #
In the energy sector, transmission systems can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Unbundling is the process of separating the different components of a company, s… #
In the energy sector, unbundling can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Vertical Integration is the process of integrating the different components of a… #
In the energy sector, vertical integration can be a significant challenge, particularly in countries where regulatory authorities are weak or ineffective.
Wholesale Market is a market where energy is traded between companies, often on… #
In the energy sector, wholesale markets can be a critical tool for promoting the integration of energy markets and ensuring the security of supply.
Wind Power is a type of renewable energy that is generated from the wind #
In the energy sector, wind power can be a critical tool for reducing greenhouse gas emissions and promoting sustainability.