Risk Hedging and Retail Competition: The Case of Electricity Markets
Posted: 25 Sep 2017
Date Written: September 13, 2017
The advent of retail competition in the energy industry was concomitant with the explicit emergence of energy suppliers. The latter buys electricity on the wholesale market or contractually from producers and resells it to its customers. The “textbook model” of competitive decentralized energy markets required the vertical separation of generation, retail, as well as network activities (transmission and distribution).
Keywords: Hedging, Electricity
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