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Theory and empirics suggest that by curbing competition, incumbent electricity companies which used to be and here are referred to as Vertically Integrated Utilities (VIUs), can increase their profitability through combined ownership of generation and transmission and/or distribution networks....
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Cost-based pricing has dominated the regulatory regime of network industries - and first of all, the regulation of the … opening and liberalization in these industries; it abolished industry regulation in several segments of the market of network … industries. Now it applies so-called "cost-based pricing" in areas where regulation is still in place. CEE countries now use the …
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