Divide and rule. The economic and legal implications of the proposed ownership unbundling of distribution and supply companies in the Dutch electricity sector

• Published in: Energy policy Vol. 35; no. 3; pp. 1785 - 1794
• Main Authors: Baarsma, Barbara, de Nooij, Michiel, Koster, Weero, van der Weijden, Cecilia
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01.03.2007; Elsevier; Elsevier Science Ltd
• Series: Energy Policy
• Subjects: Applied sciences; Cost benefit analysis; Distribution; Economic data; Economics; Electric energy; Electricity; Electricity distribution; Electricity sector; Energy; Energy economics; Energy industry; Energy policy; Exact sciences and technology; General, economic and professional studies; Legal aspects; Legislation, regulations for energy use; Netherlands; Ownership; Power marketers; Q1; Q3; Studies; Supply; Unbundling; Netherlands; Europe; Electricity sector; Unbundling; Cost–benefit analysis; Cost-benefit analysis; Economic analysis; Industrial organization; Welfare; Legislation; Debate; Legal aspect; Critical study; Electric utility; Electric power industry
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2006.05.002

In Machiavelli's theory of power, the concept of ‘divide and rule’ forms the main theme: the ruler has absolute power and to maintain and increase such power all means are justified. When viewed against the background of this theory, the current debate in the Netherlands on the unbundling of energy (electricity, gas) companies can be observed as an example of ‘divide and rule’, in which the Dutch Minister of Economic Affairs plays a central role. Yet, contrary to Machiavelli in his time, the Dutch government does, in fact, aim principally at the greater welfare of the Dutch people. It is therefore noteworthy that, while important steps in the decision to unbundled have been taken, there is no evidence that the Dutch people will indeed benefit from the envisaged unbundling.