El Poder De Mercado Bajo El Nuevo Diseño Del Pool Eléctrico Español (Market Power under the New Spain's Electric Pool Design)

Documentos de trabajo Economía y Finanzas No 09-04

31 Pages Posted: 22 Feb 2014

See all articles by John Garcia

John Garcia

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Albert Banal-Estañol

Universitat Pompeu Fabra - Department of Economics and Business (DEB); City University London - Department of Economics

Francesc Trillas

Autonomous University of Barcelona - Department of Economics; University of Navarra - IESE Business School

Date Written: December 2009

Abstract

Spanish Abstract: Durante los años 2006 y 2007, con la creación del Decreto Ley 3/2006, el Decreto Real 1634/2006 y la Orden ITC/400/2007, se introdujeron muchos cambios en el mercado eléctrico español. Uno de los objetivos de las medidas mencionadas era disminuir el poder de mercado en la industria. Así, este artículo pretende medir las diferencias entre el precio del mercado al pormayor con poder de mercado y el precio esperado en un mercado competitivo. Esta metodología se usó con anterioridad en el Reino Unidos, California (Sweeting (2007) y Boresntein et al. (2002)), pero no he sido usada para industria de generación de energía en España. Se encontró que el poder de mercado se redujo en el segundo tirmestre del 2006, pero aumentó nuevamente en el tercer trimestre del 2007, alcanzando niveles semejantes a los del principio del 2004.

English Abstract: During 2006 and 2007, by means of the Royal Decree Law 3/2006, the Royal Decree 1634/2006 and the Order ITC/400/2007, several changes were introduced in the running of the wholesale electricity market in Spain. One of the objectives of these measures was to diminish the market power in the industry. This chapter intends to measure this market power by the difference between observed wholesale market prices and estimates of competitive benchmark price. This methodology has been used previously in the United Kingdom and California (Sweeting (2007) and Boresntein et al. (2002)), but has not been used so far in the electricity generation industry in Spain. The market power is reduced in the second quarter of 2006, but it increased again in the third quarter of 2007 and reached levels similar to the ones at the beginning of 2004 (0.43).

Note: Downloadable document is in Spanish.

Keywords: market power, wholesale electricity market in Spain, observed wholesale market prices, competitive benchmark prices

JEL Classification: L11, L94, D49

Suggested Citation

Garcia, John and Banal Estañol, Albert and Trillas Jané, Francesc, El Poder De Mercado Bajo El Nuevo Diseño Del Pool Eléctrico Español (Market Power under the New Spain's Electric Pool Design) (December 2009). Documentos de trabajo Economía y Finanzas No 09-04, Available at SSRN: https://ssrn.com/abstract=2399004 or http://dx.doi.org/10.2139/ssrn.2399004

John Garcia (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

Albert Banal Estañol

Universitat Pompeu Fabra - Department of Economics and Business (DEB) ( email )

Barcelona, 08005
Spain

City University London - Department of Economics ( email )

Northampton Square
London, EC1V 0HB
United Kingdom

Francesc Trillas Jané

Autonomous University of Barcelona - Department of Economics ( email )

Avda. Diagonal 690
Barcelona, 08034
Spain

University of Navarra - IESE Business School

Avenida Pearson 21
Barcelona, 08034
Spain

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