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Key words: Third Party Access, liberalisation, electricity market
Abstract:
This article presents electricity market liberalization in Poland and Romania. The liberalization process creates competition in the buying and selling of energy and brings an advantage to the consumers who are able to freely choose their supplier. Authors present structure and main objectives of energy market in Poland and Romania and indicates barriers for liberalisation. Article includes effects of liberalization of electricity markets in Poland and Romania and compares them.
INTRODUCTION
Liberalization of energy markets can last a long time. One of general purposes of it is an escalation of efficiency achieved by usage of a pressure of competition. Greater efficiency causes lower costs and prices, which perfects competitiveness - vital for companies rivaling in a more worldwide market [1],
TPA (Third Party Access) principle, which puts an obligation on electric network owners to make it available to other entities, is crucial in liberalization process. Without it monopoly of electricity providers would be hard to break in the electricity market for end users. Users of a given network can switch to an energy purveyor other than the one (network owner), whose services they use at present time. Nevertheless, potential providers can supply energy via already existing networks. This principle allows usage of a distribution network of network enterprises without commitment to buy energy from them. Moreover, any end user has a free alternative of a purveyor that proposes the best price and supply conditions. The basis for the process of energy section liberalization is a fact that end users can pick out energy providers easily [2],
An entirely open market will let consumers take advantage from the cheapest accessible power sources and will make companies' costs less expensive. Despite the significant development realized, the present situation is not gratifying, because the level of competition between Member States of EU, as well across borders, is not enough to guarantee competitive prices. Present regulative framework should be perfected and introduced to compose enough competition in the energy market [1],
ENERGY MARKET IN POLAND
Electricity market operates on two levels. [3] Wholesale market is the first level, which involves electricity producers and wholesale buyers. Direct customers may also operate on it, but the cost of participation, the...