Michael Page

Liberalisation, Welfare Effects of the Swiss Electricity Market Reform: Energy Policy Michael Page

In people?s mind, liberalization means lower prices. One conclusion of this thesis, based on the research of price trends shows an opposite tendency. Throughout the period preceding the liberalization, prices have decreased. While the first phase shows an increase in prices. Result entirely in contrast of consumers? desire. The first part describes the current structure of the Swiss electricity market and the integration trough European interconnected project. It also illustrates the current legislation, which will frame all the work and will provide the foundation for all reflection. The second part aims to display fundamental contribution of economic theories of regulation in the analysis of the dynamics of deregulation in the electricity industry. Stiglitz (2006), Joskow and Tirole, (2006) effectively demonstrate the nature of electricity as private or public good. Moreover, recent additional developments complete this part to propose an overview on the new form of technical regulation that will occur probably in Switzerland the next years. Finally, the last part introduces empirical studies on the problem in modeling electricity prices before and after partial liberalization.