Fsr Energy & Climate

In this podcast, Panagiotis Tsangaris, alumnus of the Max Planck Institute for Innovation and Competition, discusses the competition law and regulation issues that arise as a result of capacity withdrawals in the electricity wholesale markets, exploring the application of Article 102 TFEU and the terms of Regulation 1227/2011 (REMIT). visit the Florence School of Regulation website: fsr.eui.eu In electricity wholesale markets, market power is mainly exercised either by withdrawing generation capacity (physical withdrawal) or by pricing it above competitive levels (economic withdrawal) in order to achieve a higher market price and, thereby, increase revenue. Inevitably, capacity withdrawal practices can be damaging for both the market and consumers. Thus, the ability of competent authorities to intervene against practices of physical and economic withholding of capacity is crucial. As with any other form of market abuse, the physical and economic withholding of capacity is subject to the application of compe