Author Archives: EPRG Admin

Global Trends in Electricity Transmission System Operation: Where does the future lie?

Mallika Chawla and Michael Pollitt Global Trends in Electricity Transmission System Operation: Where does the future lie?  | PDF Abstract: Unbundling of the Electricity Supply Industry (ESI) has resulted in establishment of different arrangements of electricity transmission system operation. While there is a significant move away from the traditional vertically integrated utility arrangement, it remains to… Continue Reading

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EP 31

Andreas Ehrenmann, Karsten Neuhoff A comparison of electricity market designs in networks EP 31  | Non-Technical Summary | PDF Abstract: In the real world two classes of market designs are implemented to trade electricity in transmission constrained networks. Analytical results show that in two node networks integrated market designs reduce the ability of electricity generators… Continue Reading

EP 29

Gert Brunekreeft Market-Based Investment in Electricity Transmission Networks: Controllable Flow EP 29  | Non-Technical Summary | PDF Abstract: This paper discusses unregulated market-based electricity transmission investment by third parties as opposed to regulated investment by designated transmission system operators. The analysis is set against a European and Australian institutional background and focuses on interconnection of… Continue Reading

EP 28

Paul Joskow The Difficult Transition to Competitive Electricity Markets in the US EP 28 | Non-Technical Summary | PDF Abstract: This paper discusses the causes and consequences of state and federal initiatives to introduce wholesale and retail competition into the U.S. electricity sector from 1995. The development and performance of wholesale market institutions, the expansion… Continue Reading

EP 27

M Soledad Arellano Diagnosing and Mitigating Market Power in Chile’s Electricity Industry EP 27  | Non-Technical Summary | PDF Abstract: This paper examines generators’ incentives to exercise market power and the strategies they would follow if all electricity supplies were traded in an hourly-unregulated spot market. The industry is modelled as a Cournot duopoly with… Continue Reading

EP 26

Joanne Evans, Richard Green Why Did British Electricity Prices Fall after 1998? EP 26  | Non-Technical Summary | PDF Abstract: In an attempt to reduce high electricity prices in England and Wales the government has reduced concentration among generators and introduced New Electricity Trading Arrangements (NETA). Econometric analysis on monthly data from April 1996 to… Continue Reading

EP 24

Paul Joskow, Jean Tirole Merchant Transmission Investment EP 24  | Non-Technical Summary | PDF Abstract: We examine the performance attributes of a merchant transmission investment framework that relies on ‘market driven’ transmission investment to provide the infrastructure to support competitive wholesale markets for electricity. Under a stringent set of  assumptions, the merchant investment model appears… Continue Reading

EP 23

Natsuko Toba Welfare Impacts of Electricity Generation Sector Reform in the Philippines EP 23  | Non-Technical Summary | PDF Abstract: This paper reports an empirical investigation into the welfare impacts of an introduction of private sector participation into the Philippines electricity generation sector, by liberalizing the market for independent power producers (IPPs) during the power… Continue Reading

EP 22

O Daxhelet, Y Smeers Cross-Border Trade: A Two-Stage Equilibrium Model of the Florence Regulatory Forum Proposals EP 22  | Non-Technical Summary | PDF Abstract: Journal: Published as: The EU regulation on crossnext term-border trade of electricity: A two-stage equilibrium model European Journal of Operational Research, Forthcoming Continue Reading

EP 21

Dominique Finon Introducing Competition in the French Electricity Supply Industry: The Destablisation of a Public Hierarchy in an Open Institutional Environment EP 21  | Non-Technical Summary | PDF Abstract: The French electricity supply industry is characterized by a vertically integrated monopoly and public ownership and when the government introduced market rules, it was with the… Continue Reading

EP 20

Jean-Michel Glachant, Virginie Pignon Nordic Electricity Congestion’s Arrangement as a Model for Europe: Physical Contraints or Operators’ Opportunity EP 20 | Non-Technical Summary | PDF Abstract: Congestion on power grids seems a physical reality, a “hard” fact easy to check. Our paper models a different idea: congestion signal may be distorted by transmission system operators… Continue Reading

EP 19

Tooraj Jamasb, Paul Nillesen, Michael Pollitt Strategic Behaviour under Regulation Benchmarking EP 19  | Non-Technical Summary | PDF Abstract: Liberalisation of generation and supply activities in the electricity sectors is often followed by regulatory reform of distribution networks. In order to improve the efficiency of distribution utilities, some regulators have adopted incentive regulation schemes that… Continue Reading

EP 18

Marija Ilic, Eric Hsieh, Prasad Remanan Transmission Pricing of Distributed Multilateral Energy Transactions to Ensure System Security and Guide Economic Dispatch EP 18  | Non-Technical Summary | PDF Abstract: In this paper we provide a simulations-based demonstration of a hybrid electricity market that combines the distributed competitive advantages of decentralized markets with the system security… Continue Reading

EP 15

David Newbery, Tanga McDaniel Auctions and trading in energy markets – an economic analysis EP 15  | Non-Technical Summary | PDF Abstract: Auctions are playing an increasingly prominent role in the planning and operation of energy markets. Comparing the New Electricity Trading Arrangements to the former electricity Pool in England and Wales requires some analysis… Continue Reading

EP 14

Preetum Domah Technical Efficiency in Electricity Generation – The Impact of Smallness and Isolation of Island Economies EP 14  | Non-Technical Summary | PDF Abstract: This paper conducts a comparative technical efficiency analysis of electricity generators in 16 small island economies using panel data, and two methodologies: data envelopment analysis (DEA) and stochastic frontier analysis… Continue Reading

EP 13

A Denny Ellerman, Juan-Pablo Montero The Temporal Efficiency of SO2 Emissions Trading EP 13  | Non-Technical Summary | PDF Abstract: This paper provides an empirical evaluation of the temporal efficiency of the US Acid Rain Program, which implemented a nationwide market for trading and banking sulphur dioxide (SO2) emission allowances. We first develop a model… Continue Reading

EP 12

David Newbery Regulatory Challenges to European Electricity Liberalistation EP 12  | Non-Technical Summary | PDF Abstract: The European Commission proposed to reform the Electricity and Gas Directives to improve access to transmission, increase cross-border capacity, and fully open the electricity and gas markets. The California electricity crisis has weakened support for liberalisation, removed the commitment… Continue Reading

EP 11

Preetum Domah, Michael G Pollitt, Jon Stern Modelling the costs of electricity regulation: Evidence of human resource constraints in developing countries EP 11  | Non-Technical Summary | PDF Abstract: Successful electricity industry reform depends on the presence of an appropriately staffed regulatory agency for the liberalised sector. However developing countries can have resource constraints that… Continue Reading

EP 10

Gert Brunekreeft Regulatory Threat in Vertically Related Markets: The Case of German Electricity EP 10  | Non-Technical Summary | PDF Abstract: This paper applies the concept of regulatory threat to analyse the electricity supply industry in Germany, where in contrast to other European member states, there is no ex-ante regulation of network access charges. Instead,… Continue Reading

EP 09

Stephen Littlechild Competition in Retail Electricity Supply EP 09  | Non-Technical Summary | PDF Abstract: This paper presents an analysis and defence of competition in retail electricity supply. It includes some account of its development in the UK over the last dozen years, to the point where all retail price controls have now been removed.… Continue Reading

EP 08

Tooraj Jamasb Reform and Regulation of the Electricity Sectors in Developing Countries EP 08  | Non-Technical Summary | PDF Abstract: The 1990s witnessed a worldwide trend toward electricity sector reforms in developed and developing economies. These reforms have generally been based on private participation, regulatory reform, and competition in the sector. This paper reviews and… Continue Reading

EP 07

Richard Gilbert, Karsten Neuhoff, David Newbery Allocating Transmission to Mitigate Market Power in Electricity Networks EP 07 | Non-Technical Summary | PDF Abstract: We ask what conditions transmission contracts increase or mitigate market power. We show that the allocation process of transmission rights is crucial. In an efficient arbitraged uniform price auction, generators will only… Continue Reading

EP 06

Tanga McDaniel, Karsten Neuhoff Auctions to gas transmission access: The British experience EP 06 | Non-Technical Summary | PDF Abstract: When access to monopoly owned networks is constrained auctioning access rights can increase the efficiency of allocations relative to negotiation and grandfathering when there is sufficient competition among network users. Historically, access rights to entry… Continue Reading

EP 05

Karsten Neuhoff Optimal congestion treatment for bilateral electricity trading EP 05  | Non-Technical Summary | PDF Abstract: How to treat transmission constraints in electricity markets that are not based on a pool but on bilateral trading? Three approaches are currently discussed: First, the system operator resolves constraints and socialises costs; second, physical transmission contracts; third,… Continue Reading

EP 04

Tanga McDaniel, Karsten Neuhoff Use of long-term auctions for network investment EP 04  | Non-Technical Summary | PDF Abstract: Short-term auctions for access to entry terminals of the British gas-network appear to successfully allocate scarce resources and capture scarcity rent. Now long-term auctions are being introduced to guide future capacity expansion decisions. In our model… Continue Reading

EP 03

Toru Hattori, Tooraj Jamasb, Michael G Pollitt A comparison of UK and Japanese electricity distribution performance 1985-1998: lessons for incentive regulation EP 03  | Non-Technical Summary | PDF Abstract: International comparisons can be used to study relative efficiency of decision-making units in an industry in a wider context. In particular, cross-country comparisons can, help regulators of… Continue Reading

EP 02

Paul Joskow, Edward Kahn A quantitative analysis of pricing behaviour in California’s wholesale electricity market during summer 2000: the final word EP 02  | Non-Technical Summary | PDF Abstract: During the Summer of 2000, wholesale electricity prices in California were nearly 500% higher than they were during the same months in 1998 or 1999. This… Continue Reading

EP 01

David Newbery Issues and options for restructuring electricity supply industries EP01 | Non-Technical Summary | PDF Abstract: The electricity supply industry is highly capital-intensive, whose success depends critically upon the management of its investment. In most developing countries investment is poorly managed, poorly maintained, and often inadequate. Inadequate regulation or political control lead to low… Continue Reading

Will the lights go out? Energy Policy to 2020 (11.03.10)

Presentation Download The lights stayed on for EPRG Festival of Social Science and Cambridge Science Festival Event The EPRG held a panel event on Thursday 11 March in Little Hall under the ESRC Festival of Social Science and the Cambridge Festival of Science. Open to all, an audence made up of academic, researchers and the general… Continue Reading

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EPRG Festival of Ideas event (28.10.10)

Energy Policies: the Good, the Bad and the Ugly Using interactive technology, the EPRG explains which current energy policies (carbon prices, renewable subsidies, winter fuel payments, smart meters etc) make economic sense, which should be dropped and which will always be messy? Presentation Download Podcast available at Judge Business School Website  More podcasts of the… Continue Reading

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EPRG Festival of Ideas Event (27.10.11)

Energy Policy: Should Scientist be in Charge? The EPRG lifts the lid on the long-standing dispute between engineers and economists. Who knows best and whose contributions should be used to solve the problems of energy usage in the UK today? We look for the middle ground between the two. Audience participation though interactive voting is… Continue Reading

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A Conference in Honour of the 65th birthday of Professor David M.G. Newbery

In September 2008 a special edition of the Energy Journal was produced in honour of Professor David Newbery.  On the 12 and 13 September 2008 a Dinner and Conference was also held in his honour with presentations from the authors of papers in the Journal Conference Agenda Stephen Littlechild – Chairs of Applied Economics and… Continue Reading

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EPRG 0902

William Yu and Michael Pollitt Does Liberalisation cause more electricity blackouts? Evidence from a global study of newspaper reports EPRG 0902  | Non-Technical Summary | PDF Abstract: There is a public perception that electricity liberalisation is the major cause of recent electricity blackouts. This is reflected in the newspaper reporting of blackouts. By contrast, it… Continue Reading