Regulation, competition in natural gas industry
- Federal Energy Regulatory Commission, Washington, DC (United States)
Conventional regulatory and rate-making tools are not adequate to deal with today`s natural-gas market, according to Richard P. O`Neill and Charles S. Whitmore of the Federal Energy Regulatory Commission in Washington, D.C. {open_quotes}Competitive market forces can substitute for many activities that traditionally have been regulated,{close_quotes} say O`Neill and Whitmore. {open_quotes}However, market-based solutions are only effective if traditional regulations is replaced by institutions that foster competition.{close_quotes} The transition to the era of open access to the transmission network, and thus to wellhead competition, started in the mid-1980s. More recently, change has also occurred in the industry`s communication and control activities. Pipelines now make more use of electronic communication and control, which will spread into pricing and capacity-release markets. Current trends and new policies for greater gas use make forecasting as difficult now as it has been for the past 20 years. O`Neill and Whitmore conclude that development of efficient institutions, therefore, should be the most important task of regulatory bodies.
- OSTI ID:
- 75488
- Journal Information:
- Forum for Applied Research and Public Policy, Vol. 10, Issue 2; Other Information: PBD: Sum 1995
- Country of Publication:
- United States
- Language:
- English
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