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Does vertical integration have an effect on load factors ? – A test on coal-fired plants in England & Wales

Listed author(s):
  • José A. López

    (Servicio de Radiodiagnostico Preteimagen)

  • Evens Salies

    (Observatoire français des conjonctures économiques)

Today in the British electricity industry, most electricity suppliers hedge a large proportion of their residential customer base requirements by owning their own plant. The non-storability of electricity and the corresponding need for an instantaneous matching of generation and consumption creates a business need for integration. From a sample of half-hour data on load factor for coal-fired power plants in England and Wales, this paper tests the hypothesis that vertical integration with retail businesses affects the extent to which producers utilize their capacity. We also pay attention to this potential effect during periods of peak demand.

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Paper provided by Sciences Po in its series Sciences Po publications with number 2006-3.

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Date of creation: Feb 2006
Handle: RePEc:spo:wpmain:info:hdl:2441/7069
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