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Working paper / Energy

How to rationalize the debate about 'EU Energy Third Package'? Revisiting Criteria to Compare Electricity Transmission Organizations

Author(s): LÉVÊQUE François, GLACHANT Jean-Michel, SAGUAN Marcelo, DE MUIZON Gildas

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ABSTRACT

This paper develops a theoretical framework to rank different electricity transmission organizations according five criteria (transaction cost saving, performance based regulation implementation, conflicts of interest, non-discriminatory access and benefits from regional integration). We demonstrate that ITSO is not always the first-best arrangement when taking into account the benefits from regional integration.