Overseeing Natural Monopolies: A Comparative Assessment of the Approach on Competition in the Electricity Sector

The Second Academic Gift Book of ELIG Gürkaynak Attorneys-at-Law on Selected Contemporary Competition Law Matters 339-372 (2019), ISBN: 978-605-315-352-8

44 Pages Posted: 14 Jun 2019

See all articles by Gonenc Gurkaynak

Gonenc Gurkaynak

ELIG Gürkaynak Attorneys-at-Law

Merve Öner

ELIG, Attorneys-at-Law

Aybüke Akdağ

ELIG Gürkaynak Attorneys-At-Law

Date Written: March 2019

Abstract

The conception of “economies of scale” in the conventional production era led to the proliferation of natural monopolies, as if demand for certain needs and products could only be sufficiently met by colossal entities. The most efficient method for achieving higher production capacities, lower prices, and thus, enhancing public welfare appeared to be eliminating competition in these markets by designating a single economic unit—whether state-owned, private, or a public-private partnership—as the sole supplier.

This article attempts to examine and illuminate the competition law regime’s handling of natural monopolies in general, particularly electricity sector. In this regard, this article will (i) examine the legal and economic context of natural monopolies in general and (ii) compare the liberation policies of the electricity sector within the European Union and the United States with the Turkish Competition Authority’s approach to the sector’s liberation process. As a result, the article will analyse the on-going competitive issues within the electricity sector in Turkey and provide resolutions on how the liberation and competition within the sector can be enhanced.

Keywords: natural monopolies, competition law, deregulation, Liberalization

JEL Classification: K21, L40, L52

Suggested Citation

Gurkaynak, Gonenc and Öner, Merve and Akdağ, Aybüke, Overseeing Natural Monopolies: A Comparative Assessment of the Approach on Competition in the Electricity Sector (March 2019). The Second Academic Gift Book of ELIG Gürkaynak Attorneys-at-Law on Selected Contemporary Competition Law Matters 339-372 (2019), ISBN: 978-605-315-352-8, Available at SSRN: https://ssrn.com/abstract=3396988

Gonenc Gurkaynak (Contact Author)

ELIG Gürkaynak Attorneys-at-Law ( email )

Çitlenbik Sokak No:12
Yıldız Mahallesi
Istanbul, Beşiktaş 34349
Turkey

Merve Öner

ELIG, Attorneys-at-Law ( email )

Çitlenbik Sokak No:12
Yıldız Mahallesi
Istanbul, Beşiktaş 34349
Turkey

Aybüke Akdağ

ELIG Gürkaynak Attorneys-At-Law ( email )

Yıldız Mah. Çitlenbik Sk. No:12
İstanbul, 34349
Turkey

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