JEFMS Journal

ABSTRACT:

The electric power sector is facing comprehensive changes reflected in the reorganization of the entire market, in the economic relations management and the technical and technological functioning of companies. The changes are in fact a consequence of various restructuring processes in the electric power sector, which are parallelly unfolding depending on the course and dynamics of the structural reforms implementation. In the electric power industry, these processes primarily involve liberalization, namely, opening the market to all business entities, and thus introducing competition to the electricity power market. The establishment of competition in the electric power industry is facilitated by the process of vertical unbundling of electric power activities, which can be divided into market-oriented and regulated activities. The purpose of this paper is to present the structural reforms and processes of restructuring the electric power industry which is transforming from monopoly market structures to competitive market conditions.

KEYWORDS:

electric power market, liberalization, competition, vertical unbundling of electric power activities

REFERENCES:

1) Cerović, Lj., Maradin, D. & Čegar, S. (2014). From the Restructuring of the Power Sector to Diversification of Renewable Energy Sources: Preconditions for Efficient and Sustainable Electricity Market. International Journal of Energy Economics and Policy, 4(4), 599-609.

2) Copenhagen Economics (2005). Market Opening and Performance in Electricity. In: Market Opening in Network Industries: Part II Sectoral Analyses, Copenhagen Economics for DG Internal Market, European Commission.

3) Denona Bogović, N., Cerović, Lj. & Maradin, D. (2012). The security of electricity supply as the determinant of sustainable development. Marketing and Management of Innovations, 3(2), 254-265.

4) Dyner, I. & Larsen, E.R. (2001). From planning to strategy in the electricity industry. Energy Policy, 29, 1145-1154.

5) Ferrari, A. & Giulietti, M. (2005). Competition in electricity markets: international experience and the case of Italy. Utilities Policy, 13(3), 247-255.

6) Hunt, S. & Shuttleworth, G. (1996). Competition and choice in electricity. John Wiley & Sons, London.

7) Jamasb, T. & Pollitt, M. (2005). Electricity Market Reform in the European Union: Review of Progress toward Liberalization & Integration. MIT Center For Energy and Environmental Policy Research, No. 201 (Reprinted from The Energy Journal, Vol. 26, Special Edition, pp. 11-41.)

8) Larsen, E.R. & Bunn, D.W. (1999). Deregulation in electricity: Understanding strategic and regulatory risk. The Journal of the Operational Research Society, 50(4), 337–344.

9) Maradin, D. (2015). The Efficiency of Wind Power Companies in Electricity Generation. Doctoral dissertation, University of Rijeka Faculty of Economics and Business, Rijeka, Croatia.

10) Nillesen, P. & Pollitt, M. (2008). Ownership unbundling in electricity distribution: empirical evidence from New Zealand. EPRG Working Paper 0820; Cambridge Working Paper in Economics 0836

11) Pavić, I., Benić, Đ. & Hashi, I. (2007). Mikroekonomija [Microeconomics]. Sveučilište u Splitu, Ekonomski fakultet, Split [University of Split, Faculty of Economics, Split].

12) Public service obligations, 2004.

13) Tešnjak, S., Banovac, E. & Kuzle, I. (2010). Tržište električne energije [Electricity market]. Graphis, Zagreb.

14) Vlahinić-Dizdarević, N. & Žiković, S. (2011). Ekonomija energetskog sektora: izabrane teme [Economics of the energy sector: selected topics]. Ekonomski fakultet Sveučilišta u Rijeci, Rijeka [Faculty of Economics University of Rijeka, Rijeka].

15) Wolfram, C. (2003). The Efficiency of Electricity Generation in the U.S. After Restructuring. Center for the Study of Energy Markets, 1-31.