Natural gas price control : theoretical issues and world case studies

Abstract

Natural Gas Price Controls starts with an estimation of the benefits of price liberalisation vs. regulation, based on the evolution of European markets. However, the focus of the book is on existing price controls that still prevail worldwide at least in end user markets. An overview of theoretical issues and their relevance for the implementation of gas price regulation is provided, including infrastructure cost assessment, scarcity premiums, rates of return, and the role of price discrimination towards social and environmental policy objectives. The latter part of the book includes the description and analysis of historical and recent case studies, highlighting successful approaches as well as failures and the distortions they triggered. Featured countries are Algeria, Egypt, France, Indonesia, Israel, Italy, the Netherlands, New Zealand, Nigeria and USA. A final Chapter compares the main cases and draws lessons for regulators, policy makers and industry.