Feasibility study of application of competition law in regulation of fossil energy market Considering factors that disrupt competition

Document Type : Original Article

Author

Assistant Professor of Law, Faculty of Management, Shahroud University of Technology, Shahroud, Iran

Abstract

Creating competition to improve market efficiency has always been approved by economists and lawyers. For this reason, they study how to provide competition according to the conditions of each market. In the years after World War II, governments entered the economy and took control of the energy sector, arguing that the free market mechanism has shortcomings in the optimal allocation of resources and maximum welfare.Considering the strategic position of fossil energies, it is appropriate to identify the factors that disrupt competition in these markets; because formulating a desirable competition policy in order to fundamentally confront anti-competitive behaviors and enacting competition rules in the energy sector requires discovering the factors that affect the creation of the aforementioned behaviors.Important questions arise here: What are the most important factors that disrupt competition in fossil energies? Is it possible to apply competition law in regulating this area? In the present study, while identifying the political, technical and economic factors that disrupt competition in the field of fossil energy using hermeneutics and content analysis, and taking into account the structure of monopolistic competition in the aforementioned markets, it is argued that using only the rules of energy competition law to regulate the market is neither possible nor desirable.In the event that the aforementioned market deviates from its normal functioning,it is suggested that, in addition to formulating appropriate competition policies, a regulatory institution called the Energy Competition Committee be added to the competition section of the law implementing general policies of Article 44 of the Constitution.

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History

  • Receive Date: 21 December 2024
  • Revise Date: 09 January 2025
  • Accept Date: 19 February 2025

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