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Market Power In The Spanish Wholesale Electricity Market

  • Aitor Ciarreta

    (Universidad de Alicante)

  • María Paz Espinosa

    (Universidad del País Vasco)

In the context of the recent electricity market reforms in Europe and the US, we evaluate the performance of the Spanish pool. Our method is not based on price-cost estimates but rather on the different behavior of operators with higher market power as compared to the behavior of more competitive operators. Our results indicate that the two larger operators in the market are able to increase prices by a significant amount as compared to the situation in which each plant is run independently.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2003-22.pdf
File Function: Fisrt version / Primera version, 2003
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2003-22.

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Length: 26 pages
Date of creation: Jun 2003
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2003-22
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