Contract Law and Regulation in Energy Markets

Abstract:     
This is the English translation of the introduction to my book Contratti e regolazione nei mercati dell’energia, Bologna, il Mulino, April 2009. The starting point of the research is the claim that success or failure of liberalization programs depends on the existence of a sound institutional structure. However, there is no reason to suppose such infrastructure will be immediately available in each liberalizing country. To explore the interplay between the construction of energy markets and institutional dynamics, the book uses the example of the relationship between traditional contract law and energy regulation. The dismantling of vertically integrated monopolies increases the need to rely on contracts as coordinating devices. At the same time, they become the vehicle to pursue regulatory goals. This new role changes the meaning of traditional contract law. The comparative analysis of European and American regulatory systems shows that different normative blocks do not mesh easily. To deliver the promised benefits, liberalization programs need a more thorough reflection on the distribution of rule-making and enforcement powers in multi-level regulatory systems.

Number of Pages in PDF File: 13

Accepted Paper Series