The Dutch electricity sector has traditionally been dominated by the p
ublic sector. Although this organisational structure resulted in a rel
iable and low-priced system, it is said not to be completely stable an
d efficient. National and international developments stimulate the int
roduction of a liberalised system. In this article, we present the mod
el NEDMOD which is used to estimate possible welfare gains of an imple
mentation of a liberalised market system in the Dutch electricity mark
et. (C) 1997 Elsevier Science Ltd.