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Analysis of electricity industry liberalization in Great Britain: How did the bidding behavior of electricity producers change?

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  • Tashpulatov, Sherzod N.

Abstract

Promoting competition among electricity producers is crucial for ensuring allocative efficiency and lower electricity prices. This paper empirically examines the wholesale electricity market of England and Wales in order to analyze to what extent regulatory reforms were successful at promoting competition among electricity producers.

Suggested Citation

  • Tashpulatov, Sherzod N., 2015. "Analysis of electricity industry liberalization in Great Britain: How did the bidding behavior of electricity producers change?," Utilities Policy, Elsevier, vol. 36(C), pages 24-34.
    • Handle: RePEc:eee:juipol:v:36:y:2015:i:c:p:24-34
    DOI: 10.1016/j.jup.2015.07.004
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    1. Frank A. Wolak, 2000. "Market Design and Price Behavior in Restructured Electricity Markets: An International Comparison," NBER Chapters, in: Deregulation and Interdependence in the Asia-Pacific Region, pages 79-137, National Bureau of Economic Research, Inc.
    2. Tashpulatov, Sherzod N., 2013. "Estimating the volatility of electricity prices: The case of the England and Wales wholesale electricity market," Energy Policy, Elsevier, vol. 60(C), pages 81-90.
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    14. Crawford, Gregory S. & Crespo, Joseph & Tauchen, Helen, 2007. "Bidding asymmetries in multi-unit auctions: Implications of bid function equilibria in the British spot market for electricity," International Journal of Industrial Organization, Elsevier, vol. 25(6), pages 1233-1268, December.
    15. E. J. Anderson & H. Xu, 2004. "Nash equilibria in electricity markets with discrete prices," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 60(2), pages 215-238, October.
    16. Lízal, Lubomír M. & Tashpulatov, Sherzod N., 2014. "Do producers apply a capacity cutting strategy to increase prices? The case of the England and Wales electricity market," Energy Economics, Elsevier, vol. 43(C), pages 114-124.
    17. von der Fehr, Nils-Henrik Morch & Harbord, David, 1993. "Spot Market Competition in the UK Electricity Industry," Economic Journal, Royal Economic Society, vol. 103(418), pages 531-546, May.
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    Citations

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    Cited by:

    1. Michael Grubb & David Newbery, 2018. "UK Electricity Market Reform and the Energy Transition:Emerging Lessons," The Energy Journal, , vol. 39(6), pages 1-26, November.
    2. Michael G. Pollitt, 2019. "The European Single Market in Electricity: An Economic Assessment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(1), pages 63-87, August.
    3. Sherzod N. Tashpulatov, 2022. "Modeling Electricity Price Dynamics Using Flexible Distributions," Mathematics, MDPI, vol. 10(10), pages 1-15, May.
    4. Hassan Ali & Han Phoumin & Beni Suryadi & Aitazaz A. Farooque & Raziq Yaqub, 2022. "Assessing ASEAN’s Liberalized Electricity Markets: The Case of Singapore and the Philippines," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    5. Tashpulatov, Sherzod N., 2013. "Estimating the volatility of electricity prices: The case of the England and Wales wholesale electricity market," Energy Policy, Elsevier, vol. 60(C), pages 81-90.
    6. Štefan Bojnec & Alan Križaj, 2021. "Electricity Markets during the Liberalization: The Case of a European Union Country," Energies, MDPI, vol. 14(14), pages 1-21, July.
    7. Sherzod N. Tashpulatov, 2018. "The Impact of Behavioral and Structural Remedies on Electricity Prices: The Case of the England and Wales Electricity Market," Energies, MDPI, vol. 11(12), pages 1-24, December.
    8. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2018. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Working Paper Series in Production and Energy 27, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    9. Sherzod N. Tashpulatov, 2021. "The Impact of Regulatory Reforms on Demand Weighted Average Prices," Mathematics, MDPI, vol. 9(10), pages 1-15, May.
    10. Bublitz, Andreas & Keles, Dogan & Zimmermann, Florian & Fraunholz, Christoph & Fichtner, Wolf, 2019. "A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms," Energy Economics, Elsevier, vol. 80(C), pages 1059-1078.

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    More about this item

    Keywords

    Liberalization; Electricity markets; Uniform price auction; Market power; Regulation;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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