Lessons from International Experience with Electricity Market Monitoring

The author first describes those features of the electricity supply industry that make a prospective market monitoring process essential to a well-functioning wholesale market. Some of these features are shared with the securities industry, although the technology of electricity production and deliv...

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Main Author:	Wolak, Frank A.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ANTITRUST LAW AVERAGE PRICES BIDDING COMPETITIVENESS DEMAND GROWTH ECONOMIC CONDITIONS ECONOMICS ECONOMISTS EFFECTIVE STRATEGY ELECTRICITY FINANCIAL MARKETS FORWARD MARKETS INTERNATIONAL MARKETS LEGISLATION MARKET MARKET ANALYSIS MARKET CONDITIONS MARKET FAILURES MARKET POWER MARKET PRICES MARKET REFORMS POLICY RESEARCH PRICES PRODUCERS PURCHASING RETAIL SANCTIONS SECURITIES SPOT PRICE SPOT PRICES SUPPLIERS WHOLESALE PRICES
Online Access:	http://documents.worldbank.org/curated/en/2005/09/6246695/lessons-international-experience-electricity-market-monitoring http://hdl.handle.net/10986/8599

id	okr-10986-8599
recordtype	oai_dc
spelling	okr-10986-85992021-04-23T14:02:43Z Lessons from International Experience with Electricity Market Monitoring Wolak, Frank A. ANTITRUST LAW AVERAGE PRICES BIDDING COMPETITIVENESS DEMAND GROWTH ECONOMIC CONDITIONS ECONOMICS ECONOMISTS EFFECTIVE STRATEGY ELECTRICITY FINANCIAL MARKETS FORWARD MARKETS INTERNATIONAL MARKETS LEGISLATION MARKET MARKET ANALYSIS MARKET CONDITIONS MARKET FAILURES MARKET POWER MARKET PRICES MARKET REFORMS POLICY RESEARCH PRICES PRODUCERS PURCHASING RETAIL SANCTIONS SECURITIES SPOT PRICE SPOT PRICES SUPPLIERS WHOLESALE PRICES The author first describes those features of the electricity supply industry that make a prospective market monitoring process essential to a well-functioning wholesale market. Some of these features are shared with the securities industry, although the technology of electricity production and delivery make a reliable transmission network a necessary condition for an efficient wholesale market. These features of the electricity supply industry also make antitrust or competition law alone an inadequate foundation for an electricity market monitoring process. The author provides examples of both the successes and failures of market monitoring from several international markets. More than 10 years of experience with the electricity industry restructuring process has shown that market failures are more likely and substantially more harmful to consumers than other market failures because of how electricity is produced and delivered and the crucial role it plays in the modern economy. Wholesale market meltdowns of varying magnitudes and durations have occurred in electricity markets around the world, and many of them could have been prevented if a prospective market monitoring process backed by the prevailing regulatory authority had been in place at the start of the market. 2012-06-20T21:48:53Z 2012-06-20T21:48:53Z 2005-09 http://documents.worldbank.org/curated/en/2005/09/6246695/lessons-international-experience-electricity-market-monitoring http://hdl.handle.net/10986/8599 English Policy Research Working Paper; No. 3692 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ANTITRUST LAW AVERAGE PRICES BIDDING COMPETITIVENESS DEMAND GROWTH ECONOMIC CONDITIONS ECONOMICS ECONOMISTS EFFECTIVE STRATEGY ELECTRICITY FINANCIAL MARKETS FORWARD MARKETS INTERNATIONAL MARKETS LEGISLATION MARKET MARKET ANALYSIS MARKET CONDITIONS MARKET FAILURES MARKET POWER MARKET PRICES MARKET REFORMS POLICY RESEARCH PRICES PRODUCERS PURCHASING RETAIL SANCTIONS SECURITIES SPOT PRICE SPOT PRICES SUPPLIERS WHOLESALE PRICES
spellingShingle	ANTITRUST LAW AVERAGE PRICES BIDDING COMPETITIVENESS DEMAND GROWTH ECONOMIC CONDITIONS ECONOMICS ECONOMISTS EFFECTIVE STRATEGY ELECTRICITY FINANCIAL MARKETS FORWARD MARKETS INTERNATIONAL MARKETS LEGISLATION MARKET MARKET ANALYSIS MARKET CONDITIONS MARKET FAILURES MARKET POWER MARKET PRICES MARKET REFORMS POLICY RESEARCH PRICES PRODUCERS PURCHASING RETAIL SANCTIONS SECURITIES SPOT PRICE SPOT PRICES SUPPLIERS WHOLESALE PRICES Wolak, Frank A. Lessons from International Experience with Electricity Market Monitoring
relation	Policy Research Working Paper; No. 3692
description	The author first describes those features of the electricity supply industry that make a prospective market monitoring process essential to a well-functioning wholesale market. Some of these features are shared with the securities industry, although the technology of electricity production and delivery make a reliable transmission network a necessary condition for an efficient wholesale market. These features of the electricity supply industry also make antitrust or competition law alone an inadequate foundation for an electricity market monitoring process. The author provides examples of both the successes and failures of market monitoring from several international markets. More than 10 years of experience with the electricity industry restructuring process has shown that market failures are more likely and substantially more harmful to consumers than other market failures because of how electricity is produced and delivered and the crucial role it plays in the modern economy. Wholesale market meltdowns of varying magnitudes and durations have occurred in electricity markets around the world, and many of them could have been prevented if a prospective market monitoring process backed by the prevailing regulatory authority had been in place at the start of the market.
format	Publications & Research :: Policy Research Working Paper
author	Wolak, Frank A.
author_facet	Wolak, Frank A.
author_sort	Wolak, Frank A.
title	Lessons from International Experience with Electricity Market Monitoring
title_short	Lessons from International Experience with Electricity Market Monitoring
title_full	Lessons from International Experience with Electricity Market Monitoring
title_fullStr	Lessons from International Experience with Electricity Market Monitoring
title_full_unstemmed	Lessons from International Experience with Electricity Market Monitoring
title_sort	lessons from international experience with electricity market monitoring
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/09/6246695/lessons-international-experience-electricity-market-monitoring http://hdl.handle.net/10986/8599
_version_	1764407698385797120

Lessons from International Experience with Electricity Market Monitoring

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