Market power in the Australian power market

Brennan, Donna C.; Melanie, Jane

doi:10.1016/s0140-9883(97)00010-8

Cited by 32 publications

(14 citation statements)

References 4 publications

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“…However, a high level of extra capacity is built into the operations of the current system. Hence, the observed phenomenon of price spikes hitting the cap price suggests the presence of other causes for volatility beyond the simple corollary of the supply-demand principle [4].…”

Section: The Volatilitymentioning

confidence: 96%

A note on price volatility in the Australian electricity market

Conticini¹,

Filar²,

Nazari³

2010

ANZIAMJ

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Efficiency in electricity transmission has been a worldwide 'hot topic' for more than ten years and has led to reforms in many countries. However, the performance of the restructured electricity markets is often questioned since it depends, to a large extent, on the way market participants collectively respond to market rules and procedures. We examine data from Australia's National Electricity Market with emphasis on variability in spot prices. These data indicate that the structure of electricity generators' bidding offers may be one of the important contributors to the volatility in electricity prices. A scheme for reducing the volatility of spot prices is then proposed in the form of new regulations on the structure of generators' electricity price and volume bids.

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Section: The Volatilitymentioning

confidence: 96%

A note on price volatility in the Australian electricity market

Conticini¹,

Filar²,

Nazari³

2010

ANZIAMJ

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“…But market power is subjected to regulatory scrutiny and the exercise of market power on a persistent and significant basis can result in punitive action in Australia as well as in other jurisdictions (Besanko et al, 2007;Tamaschke et al, 2005: Newbery, 2001Church and Ware, 2000;Brennan and Melanie, 1998;Cardell et al, 1997).…”

Section: Some Key Aspects Of Electricity Generation and The Australiamentioning

confidence: 99%

Carbon prices, institutions, technology and electricity generation firms in two Australian states

Skoufa

Tamaschke

2011

Energy Policy

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“…England and Wales in the early 1990s and the California electricity crisis in 2000 represent, perhaps, the most notable examples of market power abuse in the newly created markets (Wolfram, 1999, andBorenstein et al, 2002, respectively). Other markets with documented evidence of market power are Spain (Ciaretta andEspinoza, 2009), Germany (Möst andGenoese, 2009), south-eastern Australia (Brennan andMelanie, 1998), andNew Zealand (McRae andWolak, 2009).…”

Section: Introductionmentioning

confidence: 99%

Market power issues in the reformed Russian electricity supply industry

Chernenko¹

2015

Energy Economics

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JEL classifiaction: L11 L13 L94 Keywords: Russian electricity market Market power Market liberalisation Market modellingThe paper examines long-run and short-run levels of market power in the liberalised Russian electricity market. We observe that despite potential for market power abuse, actual exercise of market power remained low. We attribute the result to the bid-at-cost rule implemented as a part of a special unit commitment procedure on the day-ahead market. We first look at the industry restructuring and subsequent mergers and acquisitions. The M&A were undertaken in different market zones and did not seem to increase concentration although planned zone integration may worsen competition in the long run. We then examine short-run aspect of market power by estimating hourly price-cost mark-ups and assessing their dynamics in 2010 and 2011, a year preceding and following the market liberalisation, respectively. The hypothesis of actual market power abuse is tested, and rejected, using time series AR models. Further, a Tobit regression shows that the liberalisation decreased the mark-ups by about 1.66 percentage points.

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Market power in the Australian power market

Cited by 32 publications

References 4 publications

A note on price volatility in the Australian electricity market

A note on price volatility in the Australian electricity market

Carbon prices, institutions, technology and electricity generation firms in two Australian states

Market power issues in the reformed Russian electricity supply industry

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