Vertical or horizontal separation? - Alive2green

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Devil is in the details Policy intentions can be derailed by implementation choices • The establishment of an economic regulator is not a cure-all – scope of regulator to improve sector outcomes strongly affected by policy choices • For example: – Does the chosen market structure complicate or simplify the regulatory task? – Does the regulator have sufficient control of the incumbent to offset its competitive advantage over new entrants? – Has the regulator been given sufficient independence? • The choice of vertical or horizontal separation, or some mixture of the two, plays a major role in determining regulatory viability – and thus the net impact of regulation on market outcomes 16
The South African policy debate
Page 1 and 2: Vertical or horizontal separation?
Page 3 and 4: Contents Outline of presentation
Page 5 and 6: Competition in networks • Not all
Page 7 and 8: Why separation? • Vertical and ho
Page 9 and 10: Substantial practical costs Vertica
Page 11 and 12: Geography is probably key Horizonta
Page 13 and 14: Market structure and regulation
Page 15: Vertical vs horizontal separation C
Page 19 and 20: Conclusions
Page 21: Tel +27 (0)12 362 0024 Fax +27 (0)1

Vertical or horizontal separation? - Alive2green

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