Natural gas in Denmark - from monopoly to competition

For years the Danish natural gas companies have been protected against competition. Now, however, as in other countries the natural gas market in Denmark is in a process of liberalisation. This implies that new market players now get the opportunity to go into the market and challenge the Danish gas companies, that the customers can freely choose their gas supplier, and that open access to the natural gas grid will be given to everybody interested in transporting gas. In this study we have investigated the following aspects of liberalising the Danish gas market: Are the changes as seen in market organisation in accordance with the guidelines of liberalisation?; Have Danish gas prices been adapted to the liberalised gas market?; What will be the consequences of harmonising energy taxes?; What kind of regulation is needed?; How is the Danish gas market different from the European gas market? By applying a general equilibrium model, ENERGAS, we have analysed the effects for the Danish gas market of carrying through a tax harmonisation. Two different scenarios have been analysed: 1. To introduce the energy tax proposal made by the Commission in the autumn of 2002; 2. To impose green taxes equivalent to the environmental costs by using energy. (BA)