Energy Resellers - An Endangered Species?

  • Fredrik Ygge
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 1788)


Many markets, including the travel, music, and book markets, are undergoing dramatic changes due do the development of electronic commerce. Reseller margins often decrease significantly and sometimes even entire links in the supply chain are becoming completely superfluous.

Even though power markets have been deregulated already for some years in many countries, electronic commerce has not yet had a major impact on the business logic. This paper presents some of the major obstacles to electronic power trade, and presents promising solutions to these obstacles. In particular it is described how software agent mediated trade may enable medium and small size consumers and producers to trade directly from power pools, without the need of traditional energy resellers.

The conclusion that is there are good reasons to believe that energy resellers are as threatened in the new information era as, e.g., traditional travel agencies, and music and book-shops are.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Agorics, Inc. Bibliography for the series Going, going, gone! (1996), available at
  2. 2.
    Akkermans, J.M., Healey, D., Ottosson, H.: The ISES Project Book, ch.10—The Transmission of Data over the Electricity Power Lines, pp. 175-216. En-erSearch AB, Malmö, Sweden (1998), available from
  3. 3.
    Akkermans, J.M., Ygge, F.: Smart software as customer assistant in large-scale distributed load management. In: Proceedings of Distribution Automation/Demand Side Management (DA/DSM) 1997. PenWell Conferences and Exhibitions (October 1997), available from
  4. 4.
    Andcrsson, A., Yggc, F.: Managing large scale computational markets. In: El-Rewini, H. (ed.) Proceedings of the Software Technology track of the 31th Hawaiian International Conference on System, Sciences (HICSS31), vol. VII, pp. 4–14. IEEE Computer Society, Los Alamos (1998) ISBN 0-8186-8251-5, ISSN 1060-3425, IEEE Catalog Number 98TB100216, available from
  5. 5.
    Bergström, U.: Optimized energy systems and new customer services - the deregulated electricity market and the ronneby case. Technical report, Division of Energy Systems, Department of Mechanical Engineering, Linkoping University, Lic. Thesis (1999), available from
  6. 6.
    Bernard, J.C., Zimmerman, R., Schulze, W., Thomas, R.J., Mount, T., Schuler, R.: Alternative auction institutions for purchasing electric power: An experimental examination. In: Proceedings of Bulk Power Systems Dynamics and Control - IV Restructuring (August 1998), available from
  7. 7.
    Borenstein, S., Bushnell, J.: An empirical analysis of the potential for market power in California’s electricity industry (1998), available at
  8. 8.
    Cheng, J., Wellman, M.P.: The WALRAS algorithm—a convergent distributed implementation of general equilibrium outcomes. Computational Economics 12, 1–24 (1998), available from
  9. 9.
    Dag, S.: A model for cost-efficient co-operation between Gotcborg Encrgi and Volvo Car Corporation. Lic. thesis. No. 605, Division of Energy Systems, Department of Mechanical Engineering, Linköping Institute of Technology (1997)Google Scholar
  10. 10.
    Davis (ed.): Are you next? 20 industries that must change. Business 2.0, pp. 44–54 (March 1999)Google Scholar
  11. 11.
    Imparatio, C.F.: Self-management of ATC by the marketplace. In: Proceedings of the 32nd Hawaiian International Conference on System, Sciences (HICSS32). IEEE Computer Society, Los Alamitos (1999)Google Scholar
  12. 12.
    Karlsson, B., Dag, S.: The ISES Project Book, ch. 2—European Industries on a Deregulated Energy Market - The Volvo Case, pp. 11–29. EnerSearch AB, Malmö, Sweden (1998), available from
  13. 13.
    Lindell, G.: The ISES Project Book, ch. 7—Power Line Communications, pp. 123-135. EnerSearch AB, Malmö, Sweden (1998), Available from
  14. 14.
    Maskin, E.S., Riley, J.: Optimal auctions with risk-averse buyers. Econometrica 52(6), 1473–1518 (1984)zbMATHCrossRefMathSciNetGoogle Scholar
  15. 15.
    McAfee, R.P., McMillan, J.: Auctions and bidding. Journal of Economic Literature 25, 699–738 (1987)Google Scholar
  16. 16.
    Melbourne, C.R., Strong, D.T.G.: Cclcct-dynamic load control. EA Technology, Capenhurst, Chester, CHI 6ES, United Kingdom (1996)Google Scholar
  17. 17.
    Milgrom, P.R.: Auction theory. In: Bewley, T. (ed.) Advances in Economic Theory: Fifth World Conference. Cambridge University Press, Cambridge (1987)Google Scholar
  18. 18.
    NordPool. The elspot market—the spot market (October 1998), available from
  19. 19.
    Sandholm, T.W.: Negotiation among Self-interested, Computationally Limited Agents. PhD thesis, University of Massachusetts, Amherst (1996), available at
  20. 20.
    Sandholm, T.W., Ygge, F.: On the gains and losses of speculation in equilibrium markets. In: Proceeding of the Fifteenth International Joint Conference on Artificial Intelligence, IJCAI 1997, August 23-29 (1997), available from
  21. 21.
    Sandholm, T.W., Ygge, F.: Constructing speculative demand functions in equilibrium markets. Technical Report WUCS-99-26, Department of Computer Science, Washington University (October 1999), Available from
  22. 22.
    Stoft, S.: Analysis of the California WEPEX applications to FERC (1996), available from
  23. 23.
    Wepex Review Team. Ad hoc bidding options: Review team report (1996), available from
  24. 24.
    Walsh, W.E., Wellman, M.P., Wurman, P.R., MacKie-Mason, J.K.: Some economics of market-based distributed scheduling. In: Proceedings of the Eighteenth International Conference, on Distributed Computing Systems, pp. 612–621 (1998), available from
  25. 25.
    Wellman, M.P.: A market-oriented programming environment and its application to distributed multicommodity flow problems. Journal of Artificial Intelligence Research (1), 1–23 (1993),
  26. 26.
    Wolak, F.A.: Market design and the behavior of prices in restructured electricity markets: An international comparison (1998), available from
  27. 27.
    Wurman, P.R., Wellman, M.P., Walsh, W.E.: The Michigan Internet AuctionBot: A configurable auction server for human and software agents. In: Proceedings of the Second International Conference on Autonomous Agents (AGENTS), Minneapolis/St. Paul, MN, pp. 301–308 (May 1998), available from
  28. 28.
    Ygge, F.: Market-Oriented Programming and its Application to Power Load Management. PhD thesis, Department of Computer Science, Lund University(1998), available from ISBN 91-628-3055-4, CODEN LUNFD6/(NFCS-1012)/l-224/
  29. 29.
    Ygge, F., Akkermans, J.M.: Duality in multi-commodity equilibrium computations and any-time algorithms. In: Zhang, C., Lukosc, D. (eds.) Proceedings of the Third Australian Workshop on DAI, Perth, Australia, pp. 65–78 (December 1997), available from
  30. 30.
    Ygge, F., Akkermans, J.M.: On resource-oriented multi-commodity market computations. In: Demazeau, Y. (ed.) Proceedings of the Third International Conference on Multi-Agent Systems ICMAS 1998, pp. 365–371. IEEE Computer Society, Los Alamitos (1998); An extended version is available from
  31. 31.
    Ygge, F., Akkcrmans, J.M., Andcrsson, A., Krcjic, M., Bocrtjcs, E.: The Home-Bots system and field tests: A multi-commodity market for predictive load management. In: Proceedings of the Fourth International Conference and Exhibition on The Practical Application of Intelligent Agents and Multi-Agents (PAAM 1999), April 19-21, pp. 363–382 (1999), available from

Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  • Fredrik Ygge
    • 1
  1. 1.EnerSearch ABGothenburgSweden

Personalised recommendations