The Impact of Unbundling of the Gas Industry in the Czech Republic on the National Economy

Abstract:

In connection with the Czech Republic to the European Union has the energy to a number of significant changes. The European Union promotes the liberalization of the energy market. The importance of the contribution lies in the analysis of gas market liberalization before and now, after the liberalization of the energy market. The aim of this paper is to explain the situation within gas industry before and after year 2007 and its economic benefits for the market. The changes happened due to European Union’s 3rd Energy package which brought the biggest changes into national economics since 2004 when Czech Republic entered into European Union. In energy business it is known as unbundling. It used to be usual that owner of transmission grid also owned distribution and trading. Therefore the price to the final customer was more likely in hands of one company. Aim of unbundling was to establish a market with several players in order to bring competitors so the final price to the customer could be established by market. Theoretical results are demonstrated by a description of each section of the energetic industry within gas market and demonstrating on economic model (ie. Monopoly, oligopoly etc.) The authors of the paper used scientific methods, in particular logic - induction, deduction, analysis, synthesis and method comparison. Results of this paper helps better understand how gas industry works from economical view.