Subject category:
Economics, Politics and Business Environment
Published by:
INSEAD
Version: 08.2004
Length: 20 pages
Data source: Field research
Abstract
This case uses the example of Electricite de France (EDF) and of the European liberation of energy markets to study public-utility deregulation. While by 2002, more than 80% of the European Union electricity market was open to competition, France has been slowing down its deregulation process. EDF, one of the largest and most successful utilities in the world is taking advantage of reduced competitive pressure to aggressively expand its stakes across Europe. This case allows a deep understanding of the electricity market and a first step discussion on the specificities of network industries such as electricity, telecom or railways. Students will learn about the benefits of deregulation and the problems of ''natural monopolies''. They will study the prerequisites for competition to work to the consumer''s interest in such industries.
About
Abstract
This case uses the example of Electricite de France (EDF) and of the European liberation of energy markets to study public-utility deregulation. While by 2002, more than 80% of the European Union electricity market was open to competition, France has been slowing down its deregulation process. EDF, one of the largest and most successful utilities in the world is taking advantage of reduced competitive pressure to aggressively expand its stakes across Europe. This case allows a deep understanding of the electricity market and a first step discussion on the specificities of network industries such as electricity, telecom or railways. Students will learn about the benefits of deregulation and the problems of ''natural monopolies''. They will study the prerequisites for competition to work to the consumer''s interest in such industries.