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Price transmission in the UK electricity market: Was NETA beneficial?

Author

Listed:
  • Giulietti, Monica
  • Grossi, Luigi
  • Waterson, Michael

Abstract

This paper explores the relationship between domestic retail electricity prices in Great Britain and their determinants in the context of the New Electricity Trading Arrangements (NETA) introduced in 2001. We employ a consistent comparison of wholesale power price series before and after NETA, alongside a difference-in-differences analysis based on using Scotland as a control. Despite NETA's stated intention of reducing wholesale and thereby retail prices, we conclude that its net effect, alongside other developments, instead merely rearranged where money was made in the system.

Suggested Citation

  • Giulietti, Monica & Grossi, Luigi & Waterson, Michael, 2010. "Price transmission in the UK electricity market: Was NETA beneficial?," Energy Economics, Elsevier, vol. 32(5), pages 1165-1174, September.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:5:p:1165-1174
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    References listed on IDEAS

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    More about this item

    Keywords

    Electricity generation Electricity supply Retail pricing Futures markets Energy market competition;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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