On the Exploitation of Market Power in the Nordic Electricity Market. The Case of Elsam
Aarhus School of Economics & Management Working Paper No. 2004-5
26 Pages Posted: 30 Aug 2004
Date Written: August 24, 2004
In this paper, a test is made of whether the Danish electricity producer, Elsam, partly or fully exploits its temporary dominant position in hours of congestion at the Nordic electricity market. There seems to be evidences suggesting that Elsam is successful in pursuing its objective of having a price in Western Denmark close to the maximum price of the surrounding and connected areas.
Keywords: Electricity markets, objectives of the firm, exploitation
JEL Classification: L12, L21, L22, L94, C1
Suggested Citation: Suggested Citation