2004, English, Article, Working paper edition: Retail Competition and Electricity Contracts Green, Richard J.

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Physical Description
  • 740246 bytes, application/​pdf
  • Working Paper
Published
  • 2004-06-16T16:05:39Z
  • 2004-01
Language
  • English

Edition details

Title
  • Retail Competition and Electricity Contracts
Author
  • Green, Richard J.
Published
  • 2004-06-16T16:05:39Z
  • 2004-01
Physical Description
  • 740246 bytes, application/​pdf
  • Working Paper
Subjects
Notes
  • Long-term contracts for electricity can counter market power and reduce prices in short-term markets. If electricity retailers face competition, however, companies signing long-term contracts are exposed to the risk that a fall in short-term prices would allow rivals to buy on the spot market and undercut them. Could this lead to less contracting and higher prices? This paper combines a model of electricity retailing and a Cournot model of competition in the wholesale markets to estimate the size of this effect, and finds that it could raise wholesale prices by two or three percent.
Language
  • English
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