IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2020i4p20-40.html
   My bibliography  Save this article

Determinants of Market Power in Electric Power Market of Rural Areas in Nigeria

Author

Listed:
  • Ademola Eyitope Ojo

    (Federal University)

Abstract

Electricity is central to socioeconomic growth and development of any economy. And, the electrical power sector of many economies has witnessed reforms in recent time, transforming into competitive and or oligopolistic market structure. In any case, energy pricing subsist as a challenge across the power value chain. This study focused identifying the determinants of market power of energy distributing operation and rural area consumers in the power retail market in Nigeria’s present oligopolistic power market structure. Adopting a production function model and econometric analysis of selected power sector time series variables between 2000-2017, the study discovered that electrical power generation, rural electricity access and energy consumption in Nigeria are though essential but do not ultimately and significantly determine market power of competing firms in the electric power market in Nigeria. It is concluded that evidence of the importance of market power for competing firms in the electric power conduct in terms of energy pricing and cost decisions is auspicious considering their prevailing market challenges. The study therefore recommend amongst others for exclusive regional or sub regional power chain structural transformation of Nigerian electrical power in order to help build efficient and effective energy supply thereby elicit information/data for control, improvement, competition and researches in the sector while Future research on market power in electrical power market is encourage on assumptions.

Suggested Citation

  • Ademola Eyitope Ojo, 2020. "Determinants of Market Power in Electric Power Market of Rural Areas in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 16(4), pages 20-40, AUGUST.
    • Handle: RePEc:dug:actaec:y:2020:i:4:p:20-40
    as

    Download full text from publisher

    File URL: http://dj.univ-danubius.ro/index.php/AUDOE/article/view/225/570
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2020:i:4:p:20-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.