Deregulation and pricing in a hydro electric system

In line with the current development in some European countries, notably the UK and the Netherlands, deregulation and market competition has been introduced in Norwegian electricity supply industry in order to improve the economic efficiency of the system. The legal basis for the introduction is the new Norwegian Energy Act that was approved in the Storting (parliament) in June 1990 and came legally into effect on January 1, 1991. The authors deal with the organizational structure, the price formation in the wholesale market, and the tariffs and metering equipment that are being developed to meet the needs of the customers and the electric utilities in this new situation