ABSTRACT
The electricity sector in Norway is undergoing transition from a traditionally highly centralized organization to a more economically efficient decentralized structure. The key words in this reorganization are: marketbased production and distribution systems, decentralization in decision making, deregulation and risk management. The formal document which provides the general guidelines for this reorganization is the new ‘Energy Law’ (Law of Production, Transformation, Transmission, Sale, and Distribution of Energy) passed by the Norwegian Parliament in June 1990. While the text of the new law is held in relatively general terms, the main emphasis in the background policy documents is on deregulation and competition with regards to the specific proposals for reorganizing the electricity system. The need for development of competitive markets for electricity to achieve the underlying objectives of the new law is obvious.
