Markets for Electricity in Europe
Richard J. Green
University of Hull - Department of Economics
Oxford Review of Economic Policy, Vol. 17, No. 3, Autumn 2001
Competition in the electricity industry requires properly functioning wholesale markets. This paper discusses the better-established electricity markets of Europe, in the Nordic countries, England and Wales, and Spain. The different market designs can all produce efficient outcomes, if not hindered by market power. Long-term contracts provide some defence against market power, and give price stability to promote investment. Competition in electricity retailing may discourage retailers from signing long-term contracts in future.
JEL Classification: L49, D44
Date posted: September 22, 2003
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