Entry-Exit Transmission Pricing with Notional Hubs: Can it Deliver a Pan-European Wholesale Market in Gas?

The European Commission has designated entry-exit tariff design as "best practice" methodology to be adopted in all gas markets throughout the Union. In this paper, Paul Hunt draws attention to the limitations of entry-exit methodology which has been devised to compensate for the failure to develop primary and secondary transmission capacity markets but, by definition, is incapable of doing so. He concludes that, without very substantial amendments, entry-exit cannot deliver a pan-European wholesale market in gas.

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