Based on the article, does equal access to all aspects of the energy infrastructure actually exist? Apply the knowledge learned in this week's session, and analyse whether equal access to energy infrastructure in Europe has actually been beneficial or detrimental to the promotion of competition and, in turn, whether this has strengthened or weakened supply side infrastructure.© BrainMass Inc. brainmass.com October 10, 2019, 8:05 am ad1c9bdddf
The reponse addresses the query posted in 1211 words with APA References
//In the energy sector, it is essentially important for effective and non-discriminatory access to third party suppliers to the networks in order to build a competitive market in the European Union. In this context, this paper highlights the existence of all the aspects of energy infrastructure that promotes competition.//
It is relatively important to supply both electricity and gas at reasonable prices in order to serve the public effectively. There is a significant level of social and economic development in the EU that ensures the provision of energy, more specifically electricity to the public without any differentiation and material status. In most of the EU countries, vertical integration undertakings are responsible for extracting, transmitting, distributing and supply of gas and electricity. The vertical integration corporations take total control over the electricity networks and gas pipelines. The vertical integration enables to restrict new entrants to enter the market as they favor their business divisions to expand. Vertically integrated companies restrain the potential competitors in several ways, which are enumerated below:
Establishing technical barriers in terms of making the procedure more complex and expensive for the customers to change the suppliers.
Mismanagement in the access of tariffs.
Incorporating various accounting techniques for cross-subsidies from distribution and transmission activities in relation to other competitive operations.
Availability of capacity is manipulated in order to ensure that lines required by the manufacturers are jam-packed.
In order to mitigate the aforementioned issues related to the discrimination against the competitors and to enhance the equality in the market sector, it is imperative to separate both transmission and distribution activities from the activities of production and supply. This in turn will ensure the non-discriminatory access of third ...
The expert determines if equal access to all aspects of the energy infrastructure actually exists. The response addresses the query posted in 1211 words with APA References.