Chapter6: Legislation and economy print

Question 1

Define a monopoly

Answer 1

When a specific person or enterprise is the only supplier of a particular commodity. Monopolies are thus characterized by a lack of economic compettion to produce to good or service

Question 2

What is a natural monopoly?

Answer 2

Natural monopoly is an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market

Question 3

What does librelization in general and in the context of the market mean?

Answer 3

Reduction of the govermental or social changes and standards.
in economy: privatization and deregulation

Question 4

EnWG(law of energy industry) ?

Answer 4

1. free choice of supplier
2. Unbudling of production,distribution and sales
3. Non-discriminating access to the grid from competitors
4. Independent regulation and supervision
5. Independent system operators

Question 5

Essential facility theory

Answer 5

In order to support competition essential facilities need to be accessed by all the competitors.

Question 6

What is unbundling?

Answer 6

Aims at vertical integerated companies, and takes palce on multiple levels: legal, organizational, informational and corporate

Question 7

What are the added values in electricity production?

Answer 7

1. Electricity production
2. Power trading
3. Transmission
4. Distribution
5. Sales