The Perspective of Long-Term Energy Supply Contracts in the Context of European Union Competition Law
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Abstract
This article analyses long-term energy contracts in relation with third-party access right to energy transmission and distribution system. Long-term energy supply contracts remain quite controversial: while enhancing the need to create competitive common energy market and to increase diversification of energy sources, the obligation to supply energy sources is contracted for a long time period with the appropriate contracted price. These contractual obligations are not reviewed or adjusted according to changing market conditions. A problem occurs because long-term energy contracts limit the possibility for new market participants to enter and compete with the existing ones. The transmission system owners often abuse their right to refuse grant third-party access using an argument of long-term energy supply contracts with take-or-pay obligations. There is a doubt if the capacity reservation mechanisms, takeor- pay obligations and other limitations dealt in long-term contracts are in line with EU competition law requirements. However, long-term contracts provide stability of energy supply and also economic benefit to the consumer. The article analyzes long-term energy supply contracts perspective in the light of European Union competitive internal energy market.
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Articles
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Authors retain copyright of their work, with first publication rights granted to the Association for Learning Technology.
Authors retain copyright of their work, with first publication rights granted to the Association for Learning Technology.