market structure, competition, and regulation in electricity market ...
market structure, competition, and regulation in electricity market ...
market structure, competition, and regulation in electricity market ...
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THE EVIDENCE, CONTINUED<br />
• Some evidence <strong>in</strong> US that divested distribution utilities performed<br />
less efficiently<br />
• One study f<strong>in</strong>ds divestitures required by state PUCs result <strong>in</strong><br />
significant efficiency losses by result<strong>in</strong>g distribution companies<br />
• Potentially another cost to be weighed aga<strong>in</strong>st benefits of<br />
de<strong>in</strong>tegration<br />
• Numerous studies of overall effects of restructur<strong>in</strong>g <strong>in</strong> US, but<br />
many are flawed<br />
• Kwoka review (2006) of 12 studies f<strong>in</strong>ds “no reliable <strong>and</strong> conv<strong>in</strong>c<strong>in</strong>g<br />
evidence that consumers are better off as a result of restructur<strong>in</strong>g”<br />
• Hence, to extent there are benefits, they range widely <strong>in</strong><br />
magnitude <strong>and</strong> certa<strong>in</strong>ty<br />
• Studies highlight areas where reforms need careful attention
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