Customer Response to Real-Time Prices in the England and Wales Electricity Market: Implications for Demand-Side Bidding and Pricing Options Design Under Competition

  • Robert H. Patrick
  • Frank A. Wolak
Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 30)

Abstract

Dissatisfaction with the performance of cost-of-service regulated or government-owned electric utilitieshas led to dramatic changes in the market structure and rules governing the operation of electricity industries in the United States and worldwide. These restructuring efforts seek to introduce competition to provide incentives for efficient pricing, investment, and operation. The predominant view is that competition is feasible for structurally or functionally separated firms generating (wholesale) and/or supplying (retail) electricity, while transmission and distribution services are most efficiently provided by firms facing alternative (to cost-based) forms of regulation (e.g., price caps). An example of this view is the England and Wales (E&W) electricity market which was established in 1990 and has served as a model for restructuring worldwide.

Keywords

Sugar Rubber Marketing Triad Volatility 

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Robert H. Patrick
  • Frank A. Wolak

There are no affiliations available

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