Transfer and Transformation of Market Reform Principles in the Energy Sector

The purpose of this paper is to compare the electricity sector reform process in Denmark and Germany and explain why the Danish reform has been characterised by comparatively quick re-regulation and slower deregulation, whereas the German reform has been characterised by quick deregulation and slower re-regulation. The explanations will be based on insights from political science on how the implementation of common reform principles in different countries is shaped respectively by the countries' relations to other countries/market partners and by its overall political institutions and inherited configurations of institutions and actors in the concerned sector regimes. The paper is based on detailed qualitative case studies of the political processes surrounding liberalisation of the electricity sector in Denmark and Germany, covering the period from the early 1990s to 2006. The hoped-for contribution of the paper is insight into how international and national politics interact in the reform of public utility sectors, where the EU is a main driver of reform.