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Liberalised Electricity Markets - Strengths and Weaknesses in Finland and Nordpool

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Author Info
Heikki Kemppi
Adriaan Perrels

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Abstract

This report gives an overview of the implications of electricity market liberalisation, with special reference to the Nordic market and Finland. The principal focus is on the functioning of the wholesale (generation) and retail (endusers) markets. Furthermore, the handling of risks and the interaction with various environmental policies receive special attention. Essentially the Nordic and Finnish electricity markets have been functioning reasonably well. Yet, under the pressure of the tight market in the winter of 2002, various shortcomings became more obvious. The re-attachment of the wholesale and retail market, inter alia through the (re)introduction of DSM, should be a prime concern. Other points of attention are - among others - the surveillance of the monopolistic services in the market and tendencies for vertical integration.

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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Research Reports with number 97.

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Date of creation: 23 Apr 2003
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Handle: RePEc:fer:resrep:97

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Related research
Keywords: Liberalisation; electricity market; Nordic; regulation;

Find related papers by JEL classification:
Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
F00 - International Economics - - General - - - General

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  1. Salerian, John & Gregan, Tendai & Stevens, Ann, 2000. "Pricing in Electricity Markets," Journal of Policy Modeling, Elsevier, vol. 22(7), pages 859-893, December. [Downloadable!] (restricted)
  2. Timothy J. Considine, 2000. "Cost Structures for Fossil Fuel-Fired Electric Power Generation," The Energy Journal, International Association for Energy Economics, vol. 21(2), pages 83-104.
  3. Amundsen, Eirik S. & Nesse, Arvid & Tjotta, Sigve, 1999. "Deregulation of the Nordic power market and environmental policy," Energy Economics, Elsevier, vol. 21(5), pages 417-434, October. [Downloadable!] (restricted)
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  4. Vine, Edward & Hamrin, Jan & Eyre, Nick & Crossley, David & Maloney, Michelle & Watt, Greg, 2003. "Public policy analysis of energy efficiency and load management in changing electricity businesses," Energy Policy, Elsevier, vol. 31(5), pages 405-430, April. [Downloadable!] (restricted)
  5. Pineau, Pierre-Olivier & Hamalainen, Raimo P., 2000. "A perspective on the restructuring of the Finnish electricity market," Energy Policy, Elsevier, vol. 28(3), pages 181-192, March. [Downloadable!] (restricted)
  6. Jong, C.M. de & Huisman, R., 2002. "Option Formulas for Mean-Reverting Power Prices with Spikes," Research Paper ERS-2002-96-F&A Revision_, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  7. John Bower & Derek W. Bunn, 2000. "Model-Based Comparisons of Pool and Bilateral Markets for Electricity," The Energy Journal, International Association for Energy Economics, vol. 21(3), pages 1-30.
  8. Mark Lijesen, . "Welfare effects of vertical integration in energy distribution," CPB Memoranda 43, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  9. Giulietti, Monica & Otero, Jesus, 2002. "The timing of tariff structure changes in regulated industries: evidence from England and Wales," Structural Change and Economic Dynamics, Elsevier, vol. 13(1), pages 71-99, March. [Downloadable!] (restricted)
  10. Deepak Sharma & Robert Bartels, 1997. "Distributed Electricity Generation in Competitive Energy Markets: A Case Study in Australia," The Energy Journal, International Association for Energy Economics, vol. 18(Special I), pages 17-40.
  11. Joskow, P.L. & Marron, D.B., 1991. "What does a Negawatt Really Cost?," Working papers 596, Massachusetts Institute of Technology (MIT), Department of Economics.
  12. Thomas E. Hoff, 1997. "Using Distributed Resources to Manage Risks Caused by Demand Uncertainty," The Energy Journal, International Association for Energy Economics, vol. 18(Special I), pages 63-84.
  13. Andrew A. Goett & Kathleen Hudson & Kenneth E. Train, 2000. "Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes," The Energy Journal, International Association for Energy Economics, vol. 21(4), pages 1-28.
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