López-Jurado, Francisco B. --- "Systemic Risks and the Reformation of the European Union Law Concerning Network Industries" [2011] ELECD 920; in Alemanno, Alberto (ed), "Governing Disasters" (Edward Elgar Publishing, 2011)

Book Title: Governing Disasters

Editor(s): Alemanno, Alberto

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9780857935724

Section: Chapter 12

Section Title: Systemic Risks and the Reformation of the European Union Law Concerning Network Industries

Author(s): López-Jurado, Francisco B.

Number of pages: 17

Extract:

12. Systemic risks and the reformation
of European Union law concerning
network industries
Francisco B. López-Jurado*

12.1 INTRODUCTION
The volcanic ash crisis and the structural measures proposed by the Euro-
pean Commission when the calm came after the storm stress an important
characteristic of air transport: its vulnerability to systemic risks. That
feature is common to other network industries providing services of general
economic interest such as electricity and gas. European Union law concern-
ing network industries has focused on facilitating competition while achiev-
ing effectiveness and high levels of performance. Those provisions are
changing the structure of the industries and as a side-effect their exposure to
systemic risks. This chapter explores some common characteristics shared
by network industries, and how the recent regulatory restructure of those
industries affects their exposure to systemic risks. The need for an increase in
the robustness and resilience of those industries recommend the approval
and implementation of adequate regulatory provisions aimed to fill the gap
between the new structures and the old security of supply approach, spe-
cially in the field of `emergency risk regulation' as defined by Alemanno in
the Introduction to this book. The volcanic ash crisis operated as a wake-up
call stressing the need to review, under a systemic risks-prevention and
management perspective, EU law related to network industries.

12.2 AIR TRAFFIC, ELECTRICITY AND NATURAL
GAS AS NETWORK INDUSTRIES: COMMON
FEATURES
12.2.1 Network-based Industries

The concept of network industry or network- ...