Abstract
Just as electricity deregulation has failed in many countries or regions, it will eventually fail in many more. The reason is simple, and is generally recognized everywhere: Deregulation increases uncertainty, and uncertainty inevitably depresses physical investment. Any success experienced by electricity or gas deregulation will be exclusively due to the initial presence of excess capacity. Moreover, in Europe, ‘restructuring’ means that a competitive or partially-competitive gas-purchasing structure will find itself confronted by powerful external suppliers. Thus the already high price of gas could go higher, to the detriment of large firms as well as households and small businesses. In the US both Energy Secretary Abraham and the Chairman of the Federal Reserve System (Alan Greenspan) have expressed grave concern about the present development of the natural gas price, which they evidently regard as a threat to the US macroeconomy that is on the same plane as an escalation in oil prices.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
