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Making free markets work
1 October 2000
A critical challenge of electricity market liberalisation is to devise rules and regulations which not only protect the environment from unnecessary pollution, but also protect the customer from unnecessary cost. Texas is proving it can be done by setting up a market for trade of environmental value separate from the market for physical electricity (page 22). Denmark, using the same concept, is aiming to prove it can rise to the challenge too (page 23). In Texas there is an added bonus: the transmission rules needed to secure outlying townships affordable electricity, are also those that allow transmission of wind power at a fair price.
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