LIBERALISATION, COMPETITION AND WELFARE EFFECTS OF THE SWISS ELECTRICITY MARKET REFORM

Liberalization of the electricity market is a constantly evolving subject and must be built step-by-step. The process has started from the partial liberalization in 2008 and will end completely in the best case in 2014. At the moment 2018-2020 is debating. Very few reports have been written in this area, this thesis aims to be one of the first that focuses on price trends and on consumer's impact. 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. Keywords: liberalization, electricity marke